Investment Q&A

Q: Hi 5i Team - At today's prices what are some key metrics and ratios for each of these three companies starting with P/E and free cash flow. Also how do they compare with the same metrics and ratios a year ago or whenever the AI theme started to become a concern. Are all three companies profitable.
Thanks.

Q: Do you not find it odd/disappointing that we have yet to see any meaningful insider buying in these names?

Q: If CSU beats their numbers for Q4 handily, do you think the stock may still continue to go down because AI still hasn't had a full effect on their numbers?

thanks

Q: Most retail/5i investors appear to have concerns about precipitous drop in share prices of Constellation Software and the other two companies, since Jul 2025 and have sought advice. Your comments in recommending to hold the positions ( and even a best ideas to buy ) have been consistent, despite Technical charts looking horrible and shares continue to make new lows with no signs of change in sentiment due to AI related fears, expected to abate any time in the near future.

5i Balanced portfolio combined weight is down to 10%, as at Dec, 2025, from 14%, at the start of the year, and perhaps will be lower, today.

These Co's have dragged the performance of the Portfolio down ( 5i and ours), significantly, over 2025 ( acknowledging huge contribution consistent outperformance over several years ) and the trend continues this year.

If you were managing clients' money, in the real world as a Portfolio Manager ( like Peter did for many years, brilliantly ), would you act differently, at some point, considering constant deterioration in Technical picture and bleeding price of the stocks, instead of holding on a large weighting in the Group, prompting you to reduce the positions (protecting clients' capital), instead of HOPING for a sentiment change, in the future, as much as you believe in the Co/Management/History, while market is telling you otherwise.

My sincere apologies, if the question sounds frustrating !!

Thank You

Q: I feel that these companies have been quite opaque in their communications with investors to date. Do you think that a bit more clarity on strategy, market conditions and future opportunities would help stabilize the market sentiment.

Q: With most software companies in a bear market, assuming AI is not really going to destroy all software companies, doesn't make this environment good for acquiring software companies (while valuations are lower)? Does the market believe that the AI companies (Open AI, Google, Anthropic, Perplexity etc.) will replace all enterprise companies? I really don't understand what is happening right now to CSU, LMN and TOI. It seems very irrational. Your thoughts?

Q: Hello Team 5i & Everyone,

Please share if you think this will be of help to other members (and not unintentionally hurt them), I thought that I would share what price levels I’m watching the CSU family at for a reaction. But at the end of the day it’s just a guess:

Lumine - It sold off the hardest initially, so it may recover first. There was a strong reaction as soon as the price action dropped just below $23. Someone likes that price and immediately bought enough to stop and reverse the sell off. Therefore, if the price action drops below $23 again I am going to watch and see what happens. What I would like to see is price go slightly lower than before and then bounce back up quickly like before, and maybe even start a bit of a rally.

Topicus - There was a strong reaction when price dropped just below $109 on Thursday that looks similar to Lumine’s $23 level on the chart, so I’m watching to see if the price action consolidates around the level that it is now. There’s also a gap fill at $104 that I’m also keeping an eye on.

CSU - I’m watching to see what the price action does if it gets down to the $2,700 (or even the $2,500) level and if there is a reaction around there.


A sell off this dramatic is like trying to stop a freight train, the same way the market sells off at the end of a bull run. It will take time, but as long as the fundamentals of the company justify it then institutional buyers will step back in at a price level that they like the potential risk/reward of and provide support for a bottom where they will start accumulating. When I see that, I will look at adding to my position. (Take a look at the chart for BCE if you’d like to see an example of this.)

Hope everyone is having a nice weekend!

Sandra

Q: These continue to be beat down with crushing depreciation in Market Cap. Would you step into any one of these right now or any other names CDN or US that appear to be a screaming buy long term. If so,, what order would that be.

Q: Do you think we are close to the bottom for Constellation, Topicus and Lumine?

Q: Have you had a chance to read the New Year message from David Nyland (CEO of Lumine Group) published on January 14?
He clearly emphasizes that AI has moved from "concept to execution" within their ecosystem. It strongly reinforces the idea that AI is proving to be a true advantageous wind for their business environment.
I would love to hear your thoughts on how this disciplined execution might impact Lumine's margins in 2026. Thank you

Q: Hi,
These stocks continue to disappoint. Would you continue to hold or what would you consider a better replacement for them. Thanks.

Q: Are you seeing signs of capitulation in these names and are investors are throwing away these quality companies at discount prices? Looking at volume, we see some of the highest volume days around Jan 15th selloff. Is this the bottom and should we begin accumulating? Current positions are CSU 3.2%, LMN 2.6% and TOI 1.3%. These darlings once made up 10% of my total portfolio and is the selloff worrying to you at all or are you still fairly confident in their future looking out 3-5 years? Thanks!

Q: Which one of csu, Lmn is best for growth in price appreciation?

Q: I am below 2% weighting in each of these companies and would like to sell one or possibly two to increase my weightings. Considering a 3 to 5 year time frame what would you sell first and what would you add to first? Please rank with some if your thoughts. Thanks. ram

Q: I need to sell some stocks for my 2026 RRIF mandatory withdrawal. Please help me to make better choices between TVK versus HPS.A and LMN versus TOI. Thank you for your great service. Bill.

Q: Hello Team,

Are you able to rank the above companies for the greatest appreciation over the next 3 years in your opinion. Thanks.

Q: Constellation Software and Lumine Group were the only two companies in our Portfolio, which had a negative return during 2025, being a rare event after years of spectacular growth. Software stocks, in general, have also been weak, for past several months, due to AI related fears. Some market watchers are hopeful to see a recovery in software stocks, during 2026 and Tech-Software ETF was up in Wednesday's trading by 1.23%, against a flat tape at Nasdaq.

1. Do you believe that investors may shake off the concerns with Constellation Software group and shares could recover in 2026, from last year's steep losses ?

2. With our combined holding down to 10-12% (CSU 7%, TOI 2.5% and LMN 2.5%), due to price declines, and road to recovery at least a few quarters away ( plus a need to raise some cash), would it be wise to trim, across the board, or consolidate into one/two names and eliminate the other ?

Thank You

Q: Topping up my TFSA - have narrowed it down to one of the above companies. Which one would you choose and why?

Q: Based on your prediction that small caps may do better than large caps in 2026, which of the above do you think are ready to giddy up ie: best chance for a 12 month return > 15%. Thank you

Q: Looking at total return on a 3 to 5 year hold, how would you rank these companies (highest first)