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2020 Marked Up!

A Fundamental & Technical Analysis

Model book traderlion 2020

AMZN
Amazon.com

Summary: Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates
through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-
party sellers through physical and online stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings,
and Echo and other devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available
in the Kindle Store; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its Websites, as well
as its stores; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content.

Sector Industry

Consumer Discretionary Internet & Direct Marketing Retail

AMZN Chart – 2020 Model Book

AMZN was not the most powerful leader of 2020 by any means. However, its EPS, revenues and EPS estimates cannot be ignored, and its price volume action
was extremely healthy and constructive.

It clearly respected its 23-EMA throughout the length of its run and despite ultimately moving sideways the past 6 months, AMZN is still the leader of its
group.

AMZN’s quarter over quarter EPS has accelerated over the prior 3 quarters to a rate of 192% in their most recent quarter, backed by a solid stream of sales.

Their annual earnings grew by 51% in 2020 and the street is looking for 29% in 2021.

Also, AMZN’s ROE has accelerated from 18.5% to 25.5% over the prior 3 quarters and it continues to be well loved by 7 of MarketSmith’s flagship funds.

AMZN broke out through $1,933.02 on April 6th as the NASDAQ followed through and made an all-time high of $3,552.25 on September 2nd for a gain of
84% in 20 weeks.

AMZN has gone on to build a constructive base since, and with a little more time, it looks like AMZN could be off to the races again in 2021.

CRWD
CrowdStrike Holdings

Summary: CrowdStrike Holdings, Inc. provides cloud-delivered solutions for next-generation endpoint protection in the United States, Australia, Germany,
India, Romania, and the United Kingdom. It offers 11 cloud modules on its Falcon platform through software as a service subscription-based model that covers
various security markets, such as endpoint security, security and IT operations, and threat intelligence to deliver comprehensive breach protection even
against today’s most sophisticated attacks. The company primarily sells its platform and cloud modules through its direct sales team. CrowdStrike Holdings,
Inc. was founded in 2011 and is headquartered in Sunnyvale, California.

Sector Industry

Technology Application Software

CRWD Chart – 2020 Model Book

The computer security software group was on fire in 2020 and CRWD was a major leader in the space.

CRWD grew their quarter over quarter earnings at a triple digit pace over the prior 4 quarters and saw acceleration over the last three.

CRWD’s quarter over quarter revenue stream grew at a rate of 84 – 89% over the prior 4 quarters, which is not only large, but consistent.

CRWD has seen a tremendous pick-up in their annual earnings over the last 3 years and the street is looking for 45% growth in 2021.

Institutional sponsorship grew consecutively for the last five quarters and Fidelity’s Contrafund, which is a MarketSmith flagship fund, had a position as of the
end of 2020.

CRWD broke out through $59.50 on April 7th, one day after the NASDAQ followed through and hit an all-time high of $227.39 on December 24th for a move of
282% in 34 weeks.

DOCU
DocuSign, Inc.

Summary: DocuSign, Inc. provides cloud-based software in the United States and internationally. The company provides an e-signature solution that enables
businesses to digitally prepare, execute, and act on agreements. It also offers DocuSign CLM, which automates workflows across the entire agreement
process; Intelligent Insights that use artificial intelligence to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows
sales representatives to automatically generate agreements with a few clicks from within Salesforce; and Negotiate for Salesforce that supports for approvals,
document comparisons, and version control. The company was founded in 2003 and is headquartered in San Francisco, California.

Sector Industry

Information Technology Application Software

DOCU Chart – 2020 Model Book

Other than a rough quarter in July 2019, DOCU’s fundamental snapshot is top notch.

DOCU was a major leader in the computer enterprise software group, which exhibited tremendous strength throughout 2020, and was a clear driver behind
the powerful trend in the general market.

Despite not seeing quarter over quarter acceleration, DOCU grew quarter over quarter earnings at a swift pace.

Fortunately, DOCU’s quarterly earnings growth was backed by solid double digit revenue growth, which accelerated consecutively over the last 4 quarters.

DOCU’s annual earnings growth over the last 5 years was textbook. Their earnings picked up every year consecutively from a loss of $0.79/share in 2016, to a
gain of $0.31/share in 2020.

It certainly doesn’t hurt that DOCU’s estimates for fiscal ’21 and ’22 are enormous at 139% and 50% respectively.

Additionally, DOCU’s ROE has increased every quarter for the last 4 quarters from 10.2% to 24.8% in the most recent quarter.

DOCU broke out through $88.27 on March 30th about a week before the NASDAQ followed though and ran up to an all-time high of $290.23 on September
2nd for a gain of 229%.

ETSY
ETSY, Inc.

Summary: Etsy, Inc. operates online market places for buyers and sellers primarily in the United States, the United Kingdom, Canada, Australia, France, and
Germany. Its online market places include Etsy.com and Reverb.com. The company offers approximately 66 million items in its various retail categories to
buyers. It also provides various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Etsy Shipping
Labels, which allows sellers in the United States, Canada, the United Kingdom, and Australia to purchase discounted shipping labels. Etsy, Inc. was founded in
2005 and is headquartered in Brooklyn, New York.

Sector Industry

Consumer Discretionary Internet & Direct Marketing Retail

ETSY Chart – 2020 Model Book

ETSY’s fundamental snapshot was outstanding by the end of 2020 and has been for a few years now.

Even though ETSY experienced a notable slowdown in their quarter over quarter earnings growth during the second half of ‘19 and the first quarter of ‘20,
they experienced triple digit earnings growth and acceleration of 113% to 367% over the 3 quarters prior, from the quarter ended December ‘18 to quarter-
end, June ‘19.

ETSY’s quarter over quarter revenue growth also experienced a slowdown during the second half of ‘19 and the first quarter of ‘20, but not nearly to the same
degree. Their revenue growth only experienced a slight deceleration comparatively, and then accelerated in a big way over its most recent 3 quarters, which
carried over to their earnings over the same period.

Not surprisingly, ETSY’s quarter over quarter growth in ROE also exploded from 18.6% to 48.5% over its most recent 3 quarters.

ETSY’s annual earnings growth has been accelerating at a swift pace over the last 5 years, from a loss of $0.49/share in 2015 to what’s shaping up to be a
huge year once their final quarter of 2020 is reported.

The retail internet group has been among the top ranks of leading industry groups for a few years now and ETSY has been a big RS winner since the beginning
of 2016.

Finally, institutional sponsorship in ETSY has picked up in a big way over the prior 5 quarters and as of the most recent quarter, 4 of MarketSmith’s flagship
funds hold positions.

ETSY broke out through $44.40 on April 6th as the NASDAQ followed through and ran up to an all-time high of $198.50 on December 22nd for a move of
346% in 30 weeks.

FVRR
Fiverr.com

Summary: Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The
company’s platform includes approximately 300 categories in eight verticals, including graphic and design, digital marketing, writing and translation, video
and animation, music and audio, programming and technology, business, and lifestyle. The company was founded in 2010 and is headquartered in Tel Aviv,
Israel.

Sector Industry

Consumer Discretionary Internet & Direct Marketing Retail

FVRR Chart – 2020 Model Book

FVRR was an extremely powerful leader in the retail internet group in 2020. The retail internet group exhibited solid relative strength throughout the year, with
many other high quality, high relative strength stocks in the group confirming its move.

2020 will be FVRR’s first year of positive earnings, assuming their final report for the year is near what the street is currently expecting. In ‘19 FVRR lost
$0.50/share. However, analysts are currently looking for them to earn about $0.27/share by the end of fiscal 2020.

FVRR’s spectacular earnings acceleration story doesn’t end here. The street is looking for a staggering 159% growth over fiscal ‘21.

FVRR’s quarter over quarter earnings showed a similar turnaround from negative to positive and have accelerated big time over the last 2 quarters.

The acceleration in FVRR’s institutional sponsorship has been explosive over the prior 7 quarters. Not to mention, 4 of MarketSmith’s flagship funds held
positions in the stock as of their most recent quarter.

FVRR broke out through $26.98 on April 8th and ran up to an all-time high of $228.49 on December 22nd for a gain of 747% in 34 weeks.

NIO
NIO Limited Designs

Summary: NIO Limited designs, manufactures, and sells electric vehicles in the People’s Republic of China, Hong Kong, the United States, the United
Kingdom, and Germany. The company offers five, six, and seven-seater electric SUVs. It is also involved in the provision of energy and service packages to its
users; marketing, design, and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after-sales
management activities. NIO Limited was founded in 2014 and is headquartered in Shanghai, China.

Sector Industry

Consumer Discretionary Automobile Manufacturers

NIO Chart – 2020 Model Book

NIO is clearly not included in this model book for its phenomenal earnings track record. They haven’t earned a dime since 2016 and the street is looking for a
loss of $0.33/share for fiscal 2021. However, this should be a big improvement over their EPS loss for 2020 once they report their final quarter.

Conversely, NIO’s quarter over quarter revenue stream is worth noting. By no means have their revenues been accelerating in a smooth, consistent manner.
However, they have exhibited the ability to generate some extremely powerful quarters, especially their most recent 2, at 140% and 159% respectively.

The major reason NIO was included in this model book was because it has been part of one of the most powerful themes, sectors/industry groups in the
market for the last few years and it appears as if this should continue well into the future.

Remember, nearly 50% of a leading stock’s price performance is directly correlated to its sector and industry group, and NIO has been a super RS leader in
the space.

NIO started off the year trading below $5.00, a relatively ignorable penny stock. However, by August 25, 2020 it broke out of a cup and handle base through
$15.45 on huge volume, offering CANSLIM style investors a clear buying opportunity.

For those traders/investors open to a bit more risk, NIO could have been purchased even earlier, at lower prices, due to its extreme liquidity. Nevertheless,
even if you didn’t get started until $15.45 at the end of August, NIO reached an all-time high of $66.99 on January 11, 2021, which is a gain of 334% in about
10 weeks.

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