Q: Please excuse me, if the question sounds similar to the another member's, recently posted.
Constellation Software stock appears have lost its momentum and continues to struggle move past the $4900-$5000 level, after reaching a high of $5300, a few months ago. The latest results, which are considered solid ( several analysts bumped their price targets ) also seem to have failed to infuse some life in the stock, with a lacklustre price action and stock quickly falling back to its 200 Day MA.
Is CSU stock following the general weakness in software names in US, seen lately?
Also, are there any catalysts. in the near term which could help the shares to break out of its range ?
We have a decent size position 12-15%, in various accounts, with a fairly low cost base and have been waiting to lighten up to 10% ( being quite comfortable with a large weighting ), and raise some cash. Is it worthwhile for stock to regain strength, before we decide to pull the trigger ?
You could address the question, in general. ignoring advice on personal weightings.
Thank you
Constellation Software stock appears have lost its momentum and continues to struggle move past the $4900-$5000 level, after reaching a high of $5300, a few months ago. The latest results, which are considered solid ( several analysts bumped their price targets ) also seem to have failed to infuse some life in the stock, with a lacklustre price action and stock quickly falling back to its 200 Day MA.
Is CSU stock following the general weakness in software names in US, seen lately?
Also, are there any catalysts. in the near term which could help the shares to break out of its range ?
We have a decent size position 12-15%, in various accounts, with a fairly low cost base and have been waiting to lighten up to 10% ( being quite comfortable with a large weighting ), and raise some cash. Is it worthwhile for stock to regain strength, before we decide to pull the trigger ?
You could address the question, in general. ignoring advice on personal weightings.
Thank you
5i Research Answer:
We have some additional comments posted this morning that addresses some of these issues. CSU does not give guidance, so other than earnings and new M&A activity, it is hard to predict any catalysts. There is speculation that it will, one day, do another subsidiary spin-out. It is not as sexy as US names, but we have no reason to expect more weakness. There are still multiple companies globally it could acquire. As noted, results were good and we would focus on fundamentals. If reducing weighting, we would focus on the portfolio decision of such a move rather than trying to time things. This we think should be a portfolio management decision and not a 'maximize profit' decision.