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No. of Recommendations: 2
Duma,

As you know forward P/S is all I will look at. Nvidia is an obvious example, except with earnings per share. Trailing EPS tells you nothing about forward EPS, and therefore one would always avoid Nvidia and yet it is possible the trailing P/E for Nvidia in less than a year will be lower than 25! Which would certainly not make the high end of the list.

SHOP's revenues, although of course forward revenue is always speculative, it seems very probable that it will be at least $1 billion dollars, and probably somewhat higher. But with SHOP I think it is reasonable to say that their forward P/S is much greater than 10, using enterprise value (which of course I also strongly prefer - as this has been essential in the past to find "expensive" great companies that were dirt cheap) is at least 13x. That is a hefty valuation.

SHOP is clearly one of the stocks that has not seen much, if anything, in regard to multiple retraction as has become common with most stocks over the last few months. True, SHOP also continues to grow faster than almost anyone as well (well except Nvidia - like OMG!).

Yes, I know, it does take more work. On an iPad you can keep three screens open at a time and get it done, or multiple screens with multiple windows. But mostly has to be done by hand. Not easy download the data work.

I have an offer with IBD. Being cheap I have avoided paying for IBD.

SHOP is not a company that I think IBD would have uncovered (but I need to look closer to see if they have an unprofitable best stock measure like Duma is great at) but I was astonished that when I picked Nvidia and Arista they were #1 and #2 in the entirety of the stock market for IBD rankings. I think I will put that on my grave stone!

This leads me to believe that inspecting the IBD rankings will greatly narrow down the best investment opportunities - although a company like SHOP or Twilio may take more heavy lifting (but Duma found SHOP, I found Twilio at the IPO - so IBD will clearly not be my only source).

Put it this way, we were discussing Nutanix a year before the Fool recommended Nutanix, I remember Elan, we were discussing that 2 years prior to the Fool recommended it, and then only after the big money was made in the Tysabri drama. Yeah, we do have an awesome track record here on NPI despite being "amateurs" at the task.

I am going to give IBD a try. I believe they have earned it when one correlates what rises to top in their rankings. Another method to reduce the labor necessary to find the best stocks to examine. Which could open up more time for examination of tings on a forward enterprise value basis.

Tinker
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