Investment Q&A

Q: PNG questions:

- What was the catalyst in mid-2024 that finally created a break-out in stock price?

- Why is it such a high-conviction 5i Research stock now compared to back a few years ago ?

- Do we know anything about the quality of management?

- What is the quality of the balance sheet ?

- How out of line is the current valuation of this stock ?

- Does it have similar runway potential that a LMN and TOI might have (with reference to success of CSU) ? ......acknowledging of course that they are in different sectors.

Q: Any thoughts on the topicus loan.Is it a sizable loan?

Thx

Q: Hello,

I read with interest this passage from a big fund quarterly report:

“We sold our smallest holding, Lumine, a small vertical market software business spun off from Constellation Software and still controlled by it. We’ve had trouble getting too excited about these spins from the mothership as we previously sold Topicus, another Constellation-owned business. These spinoffs tend to be nice businesses, but tiny and illiquid. Plus, Constellation continues to control the business economics and voting rights. It makes more sense for us to concentrate our research focus on Constellation.”

Is it fair to say that large funds often face challenges in initiating or maintaining meaningful positions in spinoffs like Lumine or Topicus, particularly due to limited liquidity and the ongoing control exerted by Constellation Software?

Thank you in advance for your insights.

Q: Hi, do you have any explanation why topic is being steadily dropping since around June 4th? Thank you

Q: Hi Team,

Are these both buyable at their current prices?

Do you see better opportunities?

Q: I hold all these tech stocks as part of a well diversified portfolio with weightings below. Tech stocks are 25% weight in my overall portfolio. The issue I'm having is determining how many to hold in this sector and what weight to allocate each. All new names that I see on my potential watchlist with high growth seem to be all tech names as well (CRWV, CRCL, SRAD, GENI, RDDT, etc..) but I'm hesitant adding more tech if my holdings are already high quality unless one of them is dragging its feet. I'm trying to balance between holding long term compounders like CSU, LMN, TOI vs high growth shorter term names like NBIS, VRT, CLS that are benefitting from AI tailwinds which could turn quicker. Do I hold 5 companies at 5% or 10 companies at a mix between 2%-5%.

Do you see any overlap here in names that could be combined? If you had to rank these names based on growth and risk/reward, what would they be currently for the next 5-10 years? What is the high level process you go through when trying to determine between candidates for a sector? Thank you!

Constellation Software Inc. 5.60%
Lumine Group Inc 5.04%
Shopify Inc 3.02%
Crowdstrike Holdings Inc 2.20%
Topicus.Com Inc 2.17%
NVIDIA Corp 2.07%
Cellebrite DI Ltd 1.58%
Vertiv Holdings Co 1.41%
Celestica Inc 1.32%
Descartes Systems Group Inc 1.00%
Nebius Group NV 0.39%

Q: Topicus has been sliding a bit for the last week. Can you recommend an entry point?

Q: What do you make of the recent acquisition? As usual - there are little details released.

Q: Rather large drop in TOI today. Any idea why?

Sheldon

Q: What are the forward PE for these companies and how does this compare historically? Thx

Q: Dear Peter et al:

Thanks for your consistent endorsement for both these spin offs of the Mothership, CSU. I don't have CSU. But do have these two darlings which have paid for more than a few years' worth of 5i Subscriptions :)

If one were to add new money, which one would you choose? LMN or TOI. Or take a sensible middle of the road decision, divide the money into equal halves and put it in both? These are in my low risk bucket!

Q: What might be a good entry price for these? Thx

Q: Do you think, TOI will also make a cut to the list of possible compounders, in Canadian small to mid cap space, over next 5- 10 years, in addition to the names, included in your reply to Jeff's question ?

Thank You

Q: Hi, just wondering if you had a chance to listen to the AGM of these companies this morning. I listened to it and they discussed a whole range of topics. They're all down 2-4% today. I'm assuming investors have some concerns of rising competition, ease of capital deployment, M&A opportunities, lowering hurdle rates, etc. Any concerns or thoughts going forward and do you see them continuing to outperform over the long term? These are long term holds for me. CSU is my largest holding at 5.8%, followed by LMN at 5.2% and TOI at 2.2%. Do these allocations look reasonable or should I balance them all out more evenly? Thank you!

Q: HI,
I dont have any credits and if you can assist in answering the question would appreciate it. Is CSU, LMN, and TOI still buys at today's prices . At this point, Is Knight worth holding? Thanks for your service

Q: Hello - what do you make of the 5% decline today?

Q: Everyone, CSU, LMN and TOI have the same company strategy. They exist in technology but different spheres. The management of LMN and TOI came from the CSU training ground with the same skill sets as CSU. Can one assume that LMN and TOI will grow at similar rates as CSU over the long term? Clayton

Q: Could you please comment on Topicus results. Thank You

Q: What are the street estimates for Topicus and Constellation ? Thank You

Q: A recent question asked for a suggested entry stock price for TOI. Your answer was $154. Today (May 12) TOI closed at $159.52. That is a difference of $5. My question is what parameters & technique did you use to determine that $154 could be an entry price. Thanks … Cal