Analyst RecommendationSecond stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/stephen-takacsy-s-past-picks~2165608
MDF COMMERCE (MDF TSX) - formerly Mediagrif
MDF Commerce is an e-commerce solutions provider for large companies like Sobeys/IGA, Dollarama, and Carrefour in Italy. The company recently announced a huge contract with Aldi, the largest food retailer in the world, for a click and collect platform for its U.K. stores. MDF also enables suppliers to bid on government contracts, and recently won a large contract with NHS in the U.K., one of the largest healthcare systems in the world. MDF’s growth accelerated during the pandemic with the rush for businesses to digitize. Nearly 80 per cent of MDF’s sales are recurring SaaS revenue. Whereas Shopify trades at over 35X sales, MDF trades at under 2.5X revenues.
- Then: $5.39
- Now: $12.80
- Return: 137%
- Total Return: 137%
PAST TOP PICK
MDF Commerce Inc.
(MDF-T)
March 22, 2021
(A Top Pick Apr 28/20, Up 137%) They offer e-commerce services for big, complex companies like Sobeys and IGA (vs. Shopify which serves small businesses). They just scored a huge deal with Aldi (https://www.globenewswire.com/news-release/2020/12/14/2144279/0/en/Aldi-signs-agreement-with-mdf-commerce-for-the-implementation-of-Click-Collect-grocery-service.html). MDF also enables supplier to bid on government contracts. They do a lot of M&A in this segment. About 80% of sales are highly recurring, yet the stock trades at only 2.5x sales vs. Shopify's 35x. True, the smaller MDF isn't growing as fast as the bigger Shopify. MDF should be trading much higher. Growth is speeding up as businesses move online.
COMPUTER SOFTWARE/PROCESSING
Stephen Takacsy, B. Eng, MBA
Price
$13.210
Owned
Yes