Investment Q&A

Q: Hi - Does CSU have to keep acquiring more companies to be sucesful or can they grow and prosper with their current lineup of businesses? Thanks

Q: You mentioned in previous member answer that (a high) Return on Equity is one of the more important markers of a well run company of which Constellation Software is consistently one of.

Can you run a screen for other companies in your coverage that exhibit this characteristic?

Q: Re John's question CSU was upgraded by RBC Monday with a $675 target price.

Sheldon

Q: Good Afternoon, CSU finished the day at $535.21. The 52 week
high is $598.00. Do you see it getting back up to the $600.00 area any time soon? Thanks John

Q: Results out today, Feb 17th. From my reading looks great! But what is 5i experts assessment?
Thanks so much.

Q: Could you please analyze and comment on CSU earnings release. I see that company handily beat on most metrics. Still trying to figure out organic growth numbers and a neutral currency organic growth rate. Thanks

Q: Many commentators are concerned growth stocks may retreat in the next while taking a back seat to value stocks. Do you agree? Thanks Bill

Q: When you say that CSU's P/E ration is 17x, are you referring to the E portion from Cash Flow or from Earnings?

Q: Peter and Team,

I've been a holder of CSU for a number of years, trimming the position as it gets overweight in the portfolio. With the recent down draft, I am at approximately 4% weighting.

Any thoughts on topping up the position and, further, why the big downdraft in the stock now? I have seen these down drafts with CSU leading into earnings announcements in the past only to have them beat and the stock rallies a lot in the following weeks.

Thoughts? Is this a case where we should sell and wait on the sidelines until we see a bottom start to form from a technical perspective and then buy back in?

Q: Hi,
Jason Donville was on BNN this morning and mentioned that Veritas had done a report on CSU with a sell recommendation. I don't see anything on the internet on this. Wondering if you've seen the report and if you have any comments on the content of the report. Thanks.

Q: Is there anything in particular causing the big drop in CSU the past couple of days. Seems odd with many tech stocks going up that this one is heading down. Thanks.

Q: Hello team. CSU appears to be in a downward trend for the last 5 days. Is this because shareholders want to lock in gains in a down market to balance their losses or is this a rotation out of thecnology stocks and into oil and resources. I note that ESL, DSG are also behaving similarly. I am a long term investor and want to better understand what are the drivers pulling these well performing companies in a downdraft. If there is a particular concern in the technology sector what might this be and what should one expect. Aside from this other recently well performing stocks such as Stella Jones and CCL Industries are on a downtrend and if these are lumped together with the other stocks mentioned above appear to all be selling off. What can you share with us and how would interpret my observations.

Thanks for your detailed insights.

Joseph

Q: Mr. Hodson, CSU 487$ ?

Q: Hi, I have owned this stock for a long time and I highly respect Marc Leonard's disciplined approach to growing Constellation to a CAD$ 11 billion company over years. However, since late 2015 and more recently in past few weeks, stock appears to show signs of exhaustion. After reaching a high of $595, a few times in 2015, stock price seems to be range bound between $495 and $525, with a day time low of $485 during January 18 market sell off. I do not wish to reduce/sell my position, but trying to figure out why this stock has been a laggard, recently. Even on the days of market rallies, while many good stocks (several from portfolios) have shown strong bounce back, price action of CSU has been only lukewarm, at best. Do you believe market is grossly underestimating its potential and stock is very underpriced at current levels? what is the short interest in the stock ? Any other comments will be most appreciated. Thnaks

Q: Hi Peter and Team,

With the recent market turmoil and economic conditions expected for the next little while can you name 3-5 companies that you think would be absolute BUYs? Whether they are solid companies that have been brought down with the general market, or ones that can actually benefit from the current conditions.

Thanks,

Jordan

Q: Hi, Nice to see Constellation software as your Top Pick on BNN !! Just a clarification about Mark Leonard's shareholding: Mark owned 1,436,136 CSU shares as per March 27, 2015 management information circular. Is there a change? You mentioned that he owns $500 mln worth of stock. Also, 17x earnings is current earnings for 2015 or forward earnings? Thanks

Q: Hi 5i - for those of us who didn't buy CSU (on the way up), do you think the price today is a good entry point long term, or would you wait (due to the current market volatility) and try to pick up cheaper? Thanks, Neil

Q: I already hold a very small position of CSU in my TFSA that I purchased back in the $370 range (makes up 1% of my total portfolio). Technology is one of the sectors I want to increase my weighting in (7% currently, looking to go to 10%). Other Tech names held are GOOGL, ESL, AAPL, AVO, SYZ. I would add to GOOGL but paying +40% in USD at this point doesn't make it so compelling. So with it's recent pullback I'm looking at adding CSU. Can I have your straight up thoughts on adding CSU here? Thanks

Q: I received this message today and wonder if you can explain its meaning more fully please. I hold the stock and debentures. Thank you.


Constellation Software Inc. Announces Rating Assignment by Fitch
Jan 06, 2016 01:44 pm | Scott Denneny

Toronto, Ontario – January 6, 2016 – Constellation Software Inc. (TSX:CSU) announced today that Fitch Ratings has assigned the Company a long-term issuer default rating of `BBB-´with a Stable Rating Outlook. Fitch’s assigned rating and outlook for the Company does not reflect any credit risk from the Total Specific Solutions (TSS) entities, other than obligations related to the TSS minority owner’s put options.

Fitch has also assigned individual ratings to the Company’s unsecured subordinated floating rate debentures, Series 1, and $300 million revolving credit facility as follows:

Unsecured subordinated floating rate debentures, series 1 `BBB-´
Revolving credit facility `BBB´
About Constellation Software Inc.

Q: Re: CONSTELLATION SOFTWARE INC UNSEC SUB FLTG RT S1 DUE 03/31/2040 INT 7.256 %
What is the schedule of payment of interest on this security? Is it still worth it for income?
Happy New Year to all at 5i,
Rick