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Why Shopify and Parex are welcome under the tree, but cannabis isn’t

Please Santa, make the market carnage stop.Michael Nagle/Bloomberg

Usually, at this time of year for my column I make a request to Santa about what we would like to see for the markets next year. But for Santa this year we have only one request: please make the carnage stop. The relentless drop in the market, the pervasive pessimism, the dreams of investors getting crushed, the angst of investors (probably) selling at the wrong time; please Santa, make it all end.

With that out of the way, it’s time for some random, unsolicited advice to a few companies and to investors in general. Here goes:

Shopify (SHOP on TSX)

SHOP sold new shares at US$154 this week. Smart institutions with teams of analysts ponied up hundreds of millions of dollars for new stock. Today’s price: US $133. It is a solid company, with lots of cash, that has very high growth. You, as an investor with no dedicated research department, sitting at home in your pyjamas, can now buy SHOP shares at a 14 per cent discount to what the ‘smart money’ paid, just a few days ago. Of course, SHOP shares can still go down. But if you buy this week at least you can avoid saying the ‘big money’ has an advantage over the little guys. That’s worth something.

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