Lightspeed Commerce Inc (LSPD.TO)

They're moving into the retails payments space as a software company, a competitor to Square. There's a lot of growth at 35% revenue YOY. Results last week missed expectations, though, so that resulted in a pullback. He prefers MSFT in the payments side, and software stocks are very expensive. Be nimble if the markets turn against them.

It's trading at a higher multiple than even Shopify, but LSPD's growth is also very high. LSPD doesn't fit in his portfolios, but LSPD is in a business with legs. Canadian analysts call this a strong buy, but one American calls LSPD a hold--a caveat. To maintain momentum, LSPD must be top-notch executors.

LSPD-T vs. SHOP-T vs. SQ-N. He owned SHOP-T and then sold it and it was a mistake. None of the three companies meet his criteria. They have rapidly growing top line but the bottom line is not where it should be. LSPD-T bought another company recently and the stock price reacted favorably. We don't know enough about their bottom lines to be comfortable with them. These are fairly aggressive positions, especially at these levels. These would not be large allocations but if you wanted a little punt and accepted the volatility then these would probably be okay. SHOP-T would be the leader of the three.

Likes it, but not for the feint of heart. Risky. They just made another acquisition in Europe. He sees 60% revenue growth, but it's not cheap. No, it's not another Shopify. Very well-run. Has a $44 target, still attractive.