X is down 4% YTD and up 13% in one year. Including the 1.75% dividend, we would not call it a crisis yet. The last quarter was good, and estimates have been rising recently. We do not see any recent negative news. IPOs remain a weak spot in Canada, however, and we would like to see more deals. IPOs are very profitable for the exchange but there have been very few in the past year and not that many are scheduled yet for 2026. Growth may slow a bit, but consensus still calls for 15%+ growth over two years. We would be fine holding this.
BDT is relatively cheap at 16X earnings with a good dividend. It has some leverage but good earnings growth is also expected. The stock is doing well and it has a backlog of $10B (up 12%). We think it is a decent small cap but risks are higher. We would be fine buying either at current prices for a three year term.