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Transaction Details

Company: Shopify
Ticker:SHOP
Yahoo Beta:1.19
Industry:Application software

Company Description:  Shopify manages shipping, ordering, and payments for online and brick and mortar stores for small to medium-sized businesses.

Purchase Date:22 Mar 2017 Sale Date:03 Oct 2017
Purchase Price:$66.93 Sale Price:$118.41
  --Split Adjusted:$66.93  --Split Adjusted:$118.41
Shares Purchased:40 Shares Sold:40
  --Split Adjusted:40  --Split Adjusted:40
Transaction Fee:$6.95 Transaction Fee:$7.06
Price Range (6 Months Prior):    Price Range (6 Months After):    
High$68.86 High$0.00
Date20 Mar 2017 Date01 Jan 1996
Low$37.90 Low$0.00
Date14 Nov 2016 Date01 Jan 1996
S&P (Purchase Date):$2,345.51 S&P (Sale Date):$2,534.58

Purchase
Timing:  We bought near the six month high.
Reason:  Shopify provides a platform for small- to medium-sized businesses to manage shipping, inventory, and payment processing. Shopify has developed a strong brand and has partnered with Amazon giving its subscribers access to a large number of potential customers. We believe Shopify provide a strong long term growth opportunity.

Sale
Timing:  0
Reason:  Shopify has hit a 52-week high on its recent announcement of "Shopicode," a QR code for online merchants It appears that the market expects Shopify to separate itself from its competitors with the new QR code system with the potential opportunity to build up virtual stores. However, in western countries, it seems to be hard to develop people's habit of using QR code to shop either though flyers or scanning at a bus stop. Currently, Shopify is trading at EV/Total R, 20.83x, compared with Amazon 3.07x, Hubspot 8.89x and GoDaddy 4.01x. The new QR code system is easily replicated, so it may not give Shopify a new competitive advantage. The total addressable market is forecast to be USD$ 10bn in 2020. If we do a quick break-even analysis, Shopify has to more than double its current client base, which means that Shopify has to attain 13.75% market share globally to break even, holding constant R&D expenses. It seems to be a good time to exit.

S&P Gain: 8.06 % Annualized Gain: 15.61%
Stock Gain: 76.92 % Annualized Gain: 190.93%

Dividends:$0.00
Net Holding Return ($): $2,045.19
Net Holding Return (%): 76.2 %