Team 5i seems to be regularly optimistic on TRI and yet I see nothing on the 12month, 6 month or 1 months charts that reflects this.
Insider buys seem scant, however, BMO asset management added 18.7% more shares (simplywallstreet) over 4 months ago, while prices were taking elevator downwards.
Can you kindly explain why you think this business will flourish in the future?
Cheers
A
There were limited insider purchases despite the recent drawdown. With that said, TRI is owned and controlled by the Thomson family, which is the largest shareholder and currently owns around 70% of the company. A large portion of TRI’s legal, accounting, and analytics software would not be easily replaced simply because there is an AI alternative that is much cheaper. There are many other factors customers consider when choosing software beyond just cost, such as regulatory requirements, product consistency, data transfer complexity, and the potential cost of operational failures. We do not think AI will be able to fully address these factors overnight, aside from making coding more efficient and cheaper.
When sentiment turns negative against certain companies or industries, it can last longer than most people expect, sometimes one to two years.
It is not a name we would be particularly worried about but with the poor momentum we think an investor can slowly pick away at it opposed to 'rushing in'.