Q: I know there is no news on CSU which reports tomorrow. It is sitting on its 200 day moving average and is the third time this year it has had a sell off to this level (actually Liberation Day (April) it fell through the 200 day), only previously to make a strong comeback. Are you concerned CSU is missing the AI craze with its long time tested acquisition strategy? Is it the Adobe of the TSX (ie. great business but not sufficiently relevant in AI)? Thanks so much.
5i Research Answer:
CSU's collection of software companies is not letting AI leave them behind. While it does not comment much, we do not have particular worries in this regard. The true impact (good or bad) remains to be seen, but the companies collectively are not standing still. AI, might, however, make some potential acquisitions less attractive in the long term, so CSU needs to be careful here, making sure it continues to buy 'relevance'. But we are confident management knows what they are doing, and the numbers remain fine, at least so far.