James Telfser Lightspeed Commerce IncLSPD.TOCOMMENTJan 22, 2020

They've had a rough 2 years, but reported their first quarter of positive EBITDA last quarter.. Are focusing on payment services, with 25% penetration among customers. It's a high-margin business and numbers should continue to improve. He likes it.

Nice bounce over last 7-8 weeks. Bit of runway left. Very highly geared to interest rates. Buy on dips: closer to $24-25, and if you're lucky $21-21.50.

Very volatile. Maybe, doesn't know. Are a smaller Shopify. A small holding for him. Would like to see consistent reporting and becoming profitable. Are in a competitive space, too.  Okay as a trade, though. Buy at $17.50, then more at $17.

Nonprofitable tech is taking it on the chin. Likes it. Continues to grow revenue. Company is projecting EBITDA-positive in 18 months. Interest rate direction can significantly impact what investors are looking for in a stock.

Part of that is the size. US investors probably don't know LSPD, whereas they do know SHOP. SHOP is the 800-pound gorilla in Canada and the US for small companies that run their own website, as well as for big companies that run a website and do e-commerce. 

LSPD has more of a niche in restaurants. They will be successful over time, but there have been challenges with restaurants. Over time, it should catch up to SHOP as far as percentage return goes.

It's done pretty well, though many have lowered their expectations. He targets $24. It was a history with financial reporting, so do your homework on this. Buy this around $22, then add more below $20.

Too narrow a focus for him. High valuation. Profitability is here and there. Lots of room for expansion. He likes tech companies with better recurring revenue and lower price points.

(A Top Pick Jun 01/22, Down 28%)

For sure a spec stock, but trades at a fraction to Shopify. This has come down a lot. he sees revenue growth around 30%. This year they're streamlining and refocusing product, overall improving. Risk/reward basis, you can buy this. Their forecast is deliberately conservative.

He bought it a few years ago but hasn't paid much attention to it in the past year and a half. It has been criticized for sending out mixed messages. He met with them in Montreal a while ago and was impressed, so is taking another look at it. Lightspeed reports on May 18.

Did well during the pandemic. Have bought a lot of companies, but they meant no profits or cash at LSPD. The company is re-focusing now. Seeing churn in customer base, so they're seeking bigger customers but this will take time. 

No pulse yet. Not bounced off the lows. Fundamentals of the business are tough. E-commerce has slowed down dramatically. Revenue growth has slowed down. New management team. SHOP is more interesting to him.

Parabolic during pandemic. Mighty fall from grace. Better ways to capitalize on secular growth of payment solutions. Not profitable, no real earnings or cashflow. Not what you want in a slowing economy.

Not a good short term hold.
Payment systems tech getting lots of attention.
Recent tech sector pullback has driven shares lower. 
Company not earnings positive yet.
Waiting until company is profitable before buying.

Last week for the first time in quite a while, some info tech names showed up on relative strength. See his Top Picks. Be quick to limit risk near recent lows of the last week or two. Signs of a positive shift, especially in the US, towards info tech. Still, given higher rates and the sensitivity in the economy, he still favours financials, industrials, and materials.