Investment Q&A

Q: What is the consensus for Q1 revenue, adjusted ebitda and adjusted eps in US dollars?

Q: Hello,

I had a portfolio with 40 Canadian stocks and it was just too many. For one thing it was too hard to follow them all and because my canadian equities only represent 60% of my portfolio, I didn't benefit much when one of the stocks did well. I've been working towards 25-28 names, selling the ones I don't want as they recover and adding them to the other positions.

I have one too many tech stocks and am trying to figure out which one to drop. I'm starting think it should be CSU as it seems to have topped out and doesn't have much organic growth. What are your thoughts on this?

My current tech stocks are OTC, ESL, CSU, SYZ, GIB, SH and TNC. Yesterday I added to OTC, ESL and SH.



Carla

Q: In Constellation Software Annual Meeting voting instructions, we are asked for vote for:

A SPECIAL RESOLUTION AUTHORIZING AND APPROVING AN AMENDMENT TO THE ARTICLES IN ORDER TO (I) CREATE A NEW CLASS OF COMMON SHARES TO BE DESIGNATED AS DE COMMON SHARES, TO BE ISSUABLE AT ANY TIME OR FROM TIME TO TIME AT THE DISCRETION OF THE BOARD OF DIRECTORS OF THE CORPORATION, (II) AMEND AND RESTATE THE RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS ATTACHING TO THE COMMON SHARES OF THE CORPORATION, AS APPLICABLE, TO REFLECT THE CREATION OF THE DE COMMON SHARES, AND (III) CHANGE THE BASIS UPON WHICH THE MAXIMUM NUMBER OF CLASS A PREFERRED SHARES WHICH MAY BE ISSUED BY THE CORPORATION IS CALCULATED TO REFLECT THE NUMBER OF ISSUED AND OUTSTANDING COMMON SHARES ON A FULLY DILUTED BASIS, ALL AS MORE PARTICULARLY DESCRIBED IN THE ACCOMPANYING MANAGEMENT INFORMATION CIRCULAR.

I have read the Management Information Circular. My understanding: one can convert common shares to DE common shares and must be held for one year from the date of issue. Holders of DE common shares are not expected to be paid regular dividends. DE Common shares will not be listed on any stock exchange. DE common shareholders will be able to reinvest dividends (DRIP) in a more tax efficient manner. If any point is incorrectly, please advise.

My questions are:
1) How would you recommend voting for this resolution?

2) If this resolution was passed and DE Common Shares are made available, what investment criteria would one choose convert to DE Common Share versus keeping Common Shares?

3) Is creation of DE common stocks a common practice in public listed companies (either in Canada or US)? If yes, what other listed Canadian companies have issue this type of stocks?

Thank you.

Q: My tech holdings are 17% of my portfolio, which is a lot higher than your latest recommendation. They include: CSU, DH, ESL, ET, MDA. Should I lighten up or is this ok for a senior who doesn't need current funds? I'd be willing to part with any of them except CSU. Thank you.

Q: What do you think the end game is for Constellation Software? Will it just keep acquiring more and more companies, or will it eventually be acquired itself?

Q: Hi, any comments on the wild swings of open and close for CSU on Friday ? I know it was the options expiry for the month, and many stocks witnessed large swings. Is there any other explanation for $516.97 open and $500.68 close with unusual large volume at open and close? Has it got anything to do with shorts for this stock? Thanks

Q: Constellation Software closed sharply lower to $500.68 with a substantial higher volume on Friday, crossing below its 50 and 200 days moving average. I am already a share holder at much lower entry price. Does this indicate some coming bad news? Please kindly advice buy/sell or hold? Thank you. Bill

Q: Hi Peter and Ryan,

For an RESP lacking Tech exposure, what would be your 2 top picks at this time.

Thanks

Dave

Q: Hi, CSU earned a lot of praise from analyst community (including 5i)after recent release of solid quarterly results. Most analysts upgraded company outlook and revised their ratings and price targets upwards. The stock responded very well and revisited $589, close to its last high reached in late 2015. However, it could not hold there and over past 10 days has returned to pre results level. I have a decent position and continue to own CSU for long term. But, with such wild fluctuations, I am interested in your comments on TA for the stock. It appears to have again moved into oversold territory with support at $525 and $500. Is the stock presenting another buying opportunity at current levels $525-$530? I know, Tech sector has sold off recently in US and Canada, but I guess there is no other specific reason for this price decline. Thanks

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.