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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi, I have been slowing adding your model portfolio to my stocks and I am somewhat concerned about Magna ( MG) and Constellation Software (CSU) seeing how they have climbed quite fast as of late. I am wondering if they are fully valued and whether or not I should wait for a pull back for these two.
Read Answer Asked by Wayne on March 13, 2014
Q: Good Comments on CSU. If they do an equity financing which will cover the cost of Total Specific Solutions (recent company purchased)what would be the expected % of share dilution that current share holders could expect? Since this info is now in the market place will this put a short term top on stock?

Thanks as always
Darcy
Read Answer Asked by Darcy on March 13, 2014
Q: RE: Bill on CSU split

I don't understand the obsession with CSU stock split. I am happy with the dip as it allowed me to buy a few more shares at the price of 2 month ago. As a small investor, I bought 11 shares at $222. It cost me $9.99 for the trade - same as if I had bought 100 shares at $22 (assuming a 10:1 split).


The only two real benefits with stock split that I see are:

1- Full 100 share lot are easier to get filled on a 'limit' order than fractional lot. Full lot must get priority because I have seen prices go lower than my fractional 'limit' order without it being filled...

2- Spliting stock results in a lower price which is more easy to DRIP (divvy reinvest) if your discount broker requires full shares - like mine does. I am actually happy with HCG 2:1 split because I have sufficient (constant) divvy dollar to buy a full share now at $43 - but could not at $86. But with CSU, even with 2:1 split, the stock price would still be $125...
Read Answer Asked by Jennifer on March 01, 2014
Q: As a shareholder of Constellation Software (CSU), I wonder why they don't do a stock split this would encourage more small shareholders to buy in, not many people want to buy 10 or 15 shares. Their volume each day is very low and it seems that this can allow a few shareholders to affect the stock price. Recently on no news other than some analyst from RBC downgrading the company from a buy to a hold the stock had a large drop. Would you have any comments? Thanks
Read Answer Asked by Bill on February 28, 2014
Q: Peter and Team,

Is it weird that, after the downgrade on CSU by RBC, RBC seems to be on the buy side of many of the transactions on CSU? I guess it would be easy for a big outfit like RBC to talk down a quality company like CSU in order to add to a position at a lower cost.

I know this sounds like conspiracy theories but, anecdotally, I noticed RBC being on the buy side of many transactions since the downgrade.

Thanks!
Read Answer Asked by Marc on February 25, 2014
Q: Hi, I have done well with CGI (GIB.A) and am up 120%. I have been thinking of selling half my postion to "play with the house's money" and use the proceeds to invest in CSU. I like to be well diversified. Or should I sell my entire position and invest it in CSU? I have no other tech exposure except a small position in ESL. Tech is only about 5% of my portfolio but it has one of the better performers for me.
Read Answer Asked by MANFRED on February 22, 2014
Q: re: CSU... read your report and thank you for that. Share Price at the time of your report (Oct 2012) was around $104, yield at $1, it was priced then at 15 times earnings and you estimated adjusted earnings would grow to $8/share in 2013. Was this growth realized and do you consider this an expensive stock at it's present valuation?

Thank You
Read Answer Asked by Gord on February 15, 2014
Q: Hello 5i
I have a small amount of $6000 left to invest in what I believe to be a balanced portfolio. I am trying to decide between vrx & csu although the higher stock cost vs the small amount of money seems silly. Would you pick either of these for growth or would there be a better choice for this amount of cash.

Thank you as alway
Craig
Read Answer Asked by Craig on February 14, 2014
Q: Some people propose screening companies using the following:
*level of compounding capital/level of capital efficiency
*High returns on equity / high profit margins
*Low to no debt
*High levels of mgt ownership
If applied to your say B+ and higher rated companies - which ones look to meet the criteria the closest.

Thank you.
Read Answer Asked by CB on January 14, 2014
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