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Constellation Software Inc. (CSU $3,709.99)
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Topicus.com Inc. (TOI $139.50)
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Lumine Group Inc. (LMN $35.19)
What could be the likely impact of Mark Leonard's resignation on Lumine and Topicus companies and their shares ? Do you believe that the two spinco's are also at the risk of losing their premium valuations, like we are witnessing with CSU shares ?
Or, since they are a little insulated with this development being independent units, with their own CEO's ?
What would you do with the two holdings?
Thank You
Thank You
We would suggest that the subsidiaries are at some risk of a sentiment shift, but less so for a fundamental shift. While owned by CSU, they do act independently and are making a name for themselves, which should simply continue without Mr. Leonard (CSU is holding another call on October 1 to discuss leadership transitions). As always, the proof will be in the numbers, and whether all companies in the group can continue to deliver. We would be comfortable holding, and would be buyers into any significant weakness in the absence of any new news developments.