Q: I have seen a lot of recommendations for CSU. I have CSU in my TFSA with a gain.
I have LMN in my TFSA with loss, i am thinking of averaging down.
Is there a big difference between the two companies and which will be better to add to?
I have LMN in my TFSA with loss, i am thinking of averaging down.
Is there a big difference between the two companies and which will be better to add to?
5i Research Answer:
LMN is much smaller, but they are both VMS software businesses with similar inudstry drivers. CSU we think should be considered safer, but LMN, being smaller, may have more upside potential with leverage to single M&A transactions and contracts. We would be fine buying either for the long term. Keep in mind CSU owns 61% of LMN so there is exposure via CSU regardless. For a growth account such as a TFSA, with CSU owned elsewhere, we would be fine buying LMN.