Topic: How To Invest

Q: Hello, Pat & Team. Can I get your opinion on Kinaxis (KXS on the TSX)? Thanks.

Article Excerpt

A: Kinaxis Inc., $82.77, symbol KXS on Toronto (Shares outstanding: 26.1 million; Market cap: $2.1 billion; www.kinaxis.com), provides cloud-based subscription software that big companies use to manage their supply chains. Kinaxis is based in Ottawa. The company’s shares began trading in June 2014 at $13 a share. The current price is down from the August 2018 high of $98.47. Kinaxis’s main product is RapidResponse, which helps manage supply, demand, inventory, order fulfillment, and capacity planning. Its applications include matching production and inventory to demand, analyzing sales patterns, and forecasting. Subscribers pay a monthly or yearly fee for software implementation, support and upgrades; contracts are typically two to five years in length, which provides the company with a steady revenue stream rather than a series of larger one-time payments for the initial sale and upgrades. Kinaxis’ customers are generally large national or multinational enterprises with complex supply chain requirements. They represent a diverse group of industries, including electronics manufacturing, aerospace and defense, industrial products, life…

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