Kinaxis Inc (KXS.TO)

(Market Call Minute.) Just reported earnings tonight. They matched estimates, but raised their guidance, but margins went down, so he is not too sure of the market’s reaction tomorrow, but is a very, very solid company overall. Still worth buying.

Focused on supply chain management, and tends to deal with difficult cases that can’t be met by traditional ERP systems. It is growing at a fairly decent clip, and thinks they have recently upped their guidance for 2016. Trades at lofty multiples, but most of their SAS peers tend to as well. On his radar screen.

Tech company on his radar. Nice cash flow, but the ROE has not been high for the length of time he likes. From a technical standpoint they are very encouraging.

Has been a good performer, possible the best IPO in the last couple of years. He took some money off the table at $50 and then added back to it when it fell. It is not cheap, but he thinks they will grow into it. He thinks larger cap managers will start to look at it.

(Market Call Minute.) Great company, great management and lots of runway. Got ahead of itself. This is a good entry point.

Supply chain management. The stock went public at $13 not that long ago, and it is now $48-$49. Growth is in the 30% range. What he really likes is that they have $108 million in cash. Growth is improving and margins are very, very high. Their average deal size is increasing, meaning their customers are confident and are buying more and are buying bigger software packages.

A fantastic company with great technology. It has a lot of run room, but could have got ahead of itself. He does not own it because it is in nose bleed territory. It could be an attractive entry point, although could break its support and it could be short term. He would reevaluate around $39.

If he didn’t own this, he would be happy just to sit and wait. We are not done all the rockiness in the market. Trading at a pretty high multiple. Have extremely high growth, but thinks you might be able to get it a little cheaper, possibly in the low $40s, on a day of panic. In the $30s it would be a screaming buy. He would lag in.

Became public in 2014 at around $13. Have done a very good job of increasing revenues, cash flow and earnings. Not cheap, but it merits a premium to the other companies because of good growth and good visibility. They continue to get larger contracts. Expects you will see some bigger signings.

It is up 150% over the last 12 months. They have been ramping up their earnings at a huge rate. There is lots of room to go here. If you can get it on a pullback it is more comfortable. They are starting to penetrate a lot of new areas. Below $40 would be a nice entry point.

Has a cloud-based software that allows companies to control their supply chain. Have about 100 clients right now and they think their addressable market is about 4000 globally. Have been growing earnings at about 25% per year. The only knock would be the valuation, but when they are growing earnings that fast you have to discount that.

It has done very well. It is one of the premium technology companies in Canada. They are now getting more traction with companies, who are signing with them. The earnings and revenue growth have been very strong.

This has software that allows companies to manage their supply chain. Apparently their services are so great that customers are seeing faster delivery times and cheaper costs. As a result the company has been starting to gain a lot of ground with customers. They only have about 100 customers and think their addressable market is around 4,000 companies. Has had great growth in the last few years with their Top and Bottom lines growing in the 20% range. The stock is fairly expensive, so if they were to have a fumble on one quarter, it might be an opportunity to get involved.