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Constellation Software Inc. (CSU $3,325.82)
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Topicus.com Inc. (TOI $125.98)
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Lumine Group Inc. (LMN $29.30)
Q: Hi 5i, here goes another CSU family Q.
Yesterday you mentioned a 10% drop would not surprise you. Well it's here. Based on your ability to use Bloomberg and other valuation tools, where do see the next floors down in the elevator so to speak. And based on these two events in the past week, how long will the family be in the dog house? Also I'm asking this on the assumption you are still fans. Thx.
Yesterday you mentioned a 10% drop would not surprise you. Well it's here. Based on your ability to use Bloomberg and other valuation tools, where do see the next floors down in the elevator so to speak. And based on these two events in the past week, how long will the family be in the dog house? Also I'm asking this on the assumption you are still fans. Thx.
5i Research Answer:
Yes we remain fans. CSU has an independent subsidiary structure, so each company runs things as they see fit. Mr. Leonard will certainly be missed, but Mr. Miller has been at the company for 20 years and knows the strategy well. Volume has increased, and there is another conference call tomorrow. But we think the panic sellers are likely largely done. Technically and 'guessing', we might see another 5% decline in the group. We do think it will take several quarters for investors to relax, though. They need to see that the strategy that has resulted in so much success for two decades is not changing, and that solid free cash flow continues.