Investment Q&A

Q: Another question, thought on Constellation. I have held this stock for many years and of course have done very well but my patience is running thin. Don't you think that management owes its shareholders something rather than not releasing any information. remaining quiet was fine when the stock was increasing double digits per year but now how about making a statement rather than silence that keeps the shareholders guessing. My thoughts. Wouldn't you think the large shareholders would want and deserve some answers.

Q: Hello

I wrote to CSU's investors relations asking them if they would be considering to start buying AI companies and he answered the following.

We have hundreds of AI initiatives taking place across CSI today and have very senior individuals spending a lot of time and effort ensuring we are not being complacent. We plan on presenting more on Ai at our AGM in May. I don’t think we need to change our acquisition strategy to stay relevant. Thanks.

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: I am a 75 year old pensioner and hold these stocks in my Rrif at a significant loss:Csu -20%,Clbt -17% and Crwd -20%.Is there any point in holding on to these considering my age and probably not a long term view(say 2-3 years)?What is the likeliehood that they will each be 10% above my purchase price in that time?

Q: Analysts’ FY2026 Estimate for CSU earnings is approx. $160, according to your own research page, as well as some other sources I looked at. Is this USD or CDN?
Also, I note that in Q3 2025 CSU reported less than $10USD/sh,
according to their own press release.
How does one make sense of these numbers?
Is the $160 estimate for 2026 actually free cash flow available to shareholders, rather than earnings?

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

Q: Have you had a chance to read Chuck Akre’s (Akre Capital) recent commentary on Constellation Software and the impact of AI?
He describes the current market uncertainty as a test of conviction, comparing the volatility to the "Gom Jabbar" test from Dune. What strikes me most is his conclusion: far from being a threat, AI appears to be an "advantageous wind" that reinforces the three pillars of their model, especially their reinvestment economics.
Do you agree with Akre that the market is underestimating CSI’s ability to turn this technological "pain" into a long-term competitive advantage? Thanks

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: Sorry for yet another CSU question! As a long-term holder of CSU, we've made a hefty profit….not as much as it was, but still hefty.

Having said that, I need to rebalance our portfolio, which I can easily accomplish by selling some, not all, CSU.

Is portfolio rebalancing justification in this scenario?

Thanks in advance for your valuable insight.

Q: what is your opinion given the recent sell off due to the founder leaving. Does the company have the people to lead it back to positive territory?

Q: I have been waiting for a bounce to sell Adobe but like CSU its gone into free fall. I am also thinking of adding to CSU Would you wait for a bounce and sell Adobe? Or sell Adobe now and switch into CSU? Or sell Adobe now and wait in cash. I know market timing is tricky but if you were in my shoes what is would you do?

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: Consellation seems to have no love right now. Is it a mistake to make a swap if one has a gain? Seems like it keeps falling. Do you still like this stock even though the momentum is so negative?

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: CSU is creating waves! If you held it, at what price would you cut your losses and exit?

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: When does the bleeding stop on this stock, down 46% from it's $5300.00 high?
Are you still comfortable holding this stock?

thnx
Dave

Q: For a portfolio overweight in Tech, which would you suggest trimming? The highest weights are VGT and NVDA, with less in GOOGL and MSFT, and a small portion in each of CSU and SHOP. Thanks for all you do!

Q: I am looking for 6 undervalued stocks in the Canadian market. What would be as your top 5 picks in order of upside potential. I am interested in some of them to have dividends.

Q: I have an incorporated business investment account. There will be no new money coming in and I will not need the money for five to ten years. Currently, I have roughly 5% in each of CSU, SVI, WSP, MELI, and TSLA, and 10% in ZSP. The remainder is split between EIT and FIE, whose distributions are primarily capital gains and eligible dividends. Would you have some suggestions on how to tweak the portfolio? Thanks.