Investment Q&A

Q: Another one on Constellation.

All software stocks bounced nicely, in Friday's trading ( IGV - Tech software ETF also bounced off its low of $80, Thursday ).

But, on a day like this, CSU is down 4% (after reversing from $2570, on Thursday ), contrasting the trend of its peers. If CSU has been hammered, over past several months, due to AI scare, like many other software Co's, it should follow the trend and be up today, but sadly no.

It appears to me that CSU may have found a bottom, in the near term ( $2175-$2200), but could well remain range bound, until posting at least a couple of solid quarters, irrespective of the general trend in software co's ( AI related fears).

Would you agree with these observations ?

Thank You

Q: Barry Schwartz is very bullish and calling for a record M&A year for CSU due to less PE competition. He’s buying the dip—do you think we should too?

Q: Do you know the Q4 and full year reporting date for CSU? I believed it was to be today after market close but can find no notice in their IR website.

Q: Good morning 5i
It is good to see the software companies at least remaining stable and some rising today. But, I have been wondering whether we have to rethink our devotion to CSU and other family members. With this recent fear you have said yourself that AI can actually help software companies and because of the important services they offer, they will not be going away soon.

But, you also said that although they are not going away today maybe some time in the future AI may succeed in replicating their services. So, the question is whether we should start thinking of CSU etc, as no longer the stalwarts that we have always believed them to be. We may begin to think that, although not today, but their days may be numbered and we need to get out before that happens. Wondering how you see this aspect?
Thanks for the great service

Q: Hi, Sorry there are lot of companies listed but in summary this is three part question:

1. I have BAM2%,BN9%,BEP5%. I was thinking of putting new money to KKR or BX or APO. Should i add new money to existing positions or to new positions. Which one and approx. price please.

2. All the listed are in red in various taxable and registered accounts. Which one is good candidate for new money , which one would be sell and hold.

3. ISRG is at 1.5%. Should i go to 5% in one shot or go slowly or just hold on . This is in taxable account.

Thanks

Q: Good Day,

I have just started adding in to my cash account, which now has me considering tax ramifications. Since I am not looking to pay MORE taxes, what are some names you would suggest for a longer term hold with no or really low dividends and a long runway for growth. I have listed PNG GRID GRGD VNP and CLS. Would you add a couple other names and rank them with a comment on their preospects.

Thanks!

James

Q: Unless I am mistaken, I believe that CSU only reports GAAP earnings, yet every website I check seems to list their "adjusted" earnings. If this is in fact the case who exactly decides on these adjustments and comes up with the adjusted EPS figure?

Q: If I am correct in my thinking, CSU grows primarily through acquisition. I remember hearing that their pipeline was huge with respect as to the number of opportunities. Perhaps those opportunities are now way cheaper and they can acquire good companies at much lower valuations.
Trying to find something positive here.....

Q: Good morning.

Yesterday software stocks took a hit following an announcement from Anthropic that it was launching a new artificial intelligence tool servicing legal work, broadly threatening software firms. Private credit stocks, including Blue Owl and TPG, declined on fears over AI disrupting the software industry.

I know you still like CSU, but I am now down ~ 25-30% since purchasing late last year. Thoughts on still holding?

Thanks as always.

Q: Hi 5i Team - With the continued downward trend of these three companies, do you think it is still now all AI fear related, and if so is there a chance some of these fears are legitimate. I think you have stated that fundamentals remain the same. Have there been any announcements from CSU, TOI, and LMN supporting their businesses and attempting to reassure investors over the past several months.
Has there been any insider buying or selling over the past half year.
It seems that Lumine may be getting hit the hardest of the three. Would that be your opinion as well.
If trimming positions in these three stocks, in what order would you do it and would the reverse hold true if adding.
Thanks.

Q: What is your take on the Zonal acquisition by Volaris? With over 700 employees and a presence in more than 16,000 sites across the UK, it seems like a major move to consolidate their leadership in the hospitality VMS sector. Also, do you think artificial intelligence could significantly impact negatively or positively the product roadmap for this type of business?

Q: It’s been a massive day for Constellation with the acquisitions of both Symplicity and Zonal being announced. Given the scale of these market leaders, how significant do you think this day is for CSU’s 2026 growth strategy, and do you see this volume as a signal that they are accelerating 'large deal' deployments to capitalize on the AI shift? I’d love to get your take on whether these additions—with their vast datasets in education and hospitality—align with the goal of improving long-term margins through AI-driven software optimization

Q: When does Constellation announce their earnings. Different sites give different answers. The Globe and Mail states February 5th. is that correct? Thank you.

Q: Sorry to sound like a broken record, but I'm kind of a deer stuck in headlights right now with regards to these software names, notably CUS, LMN, TOI, and with the news impacting TRI this morning. I've largely held onto these names and I'm not sure what to do here. Seeing constant and relentless daily selling is tough to stomach and time will only tell how much AI will impact these companies fundamentals.

In the meantime, what do I do? I don't want to hold onto losers and continue to see these go down further, at the same time, I don't want to sell at these lows. I know trimming some is an option. I have positions in these other names, do you feel any of these are vulnerable to AI severely impacting them? CRWD, SHOP, SRAD, GENI, SPOT

Thanks!

Q: Hi 5i Team,

These two companies have pursued similar strategies it seems over the years and both have been badly beaten up. Is there a preference among the two of them and why?

Thanks!

Derek

Q: I’ve heard and read comments that Constellation’s precipitous drop is fuelled by sentiment.

Would the same not be true of its climb?

In retrospect would you say that the $5000 price was overvalued? Was it ever worth that much? What ever “worth” means. Or were investors just chasing the latest thing.

On a positive note, I now no longer have to sell some to rebalance.

Q: These stocks are all down today. Does this have anything to do with Anthropic?

thanks

Q: Given the drop in CSU and OTEX today would you be buyers of either?

Q: Hi 5i,

In the event of a sharp pullback in the markets, what would be your top 5 stocks that would be on your radar to purchase?

Putting aside sector/industry/US or CAD markets and with the mindset of a 5+ year hold.

Thank you,

Greg C.

Q: Everyone, I asked AI about the psychology of CSU stock price falling and below is the summary portion of the full answer, and it is a interesting response,

Clayton

Recent CSU Price Pressure – Real Examples

Here are some real movements that show how psychology plays out:

• Analyst Calls & Target Cuts
Analyst price targets on CSU have been trimmed by brokers recently, even while maintaining Buy ratings. That doesn’t mean the business is weak, but it signals caution to the market. 

• Technical Downturn
CSU has traded under long-term moving averages—a common trigger for mechanical and psychological selling pressure. 

• Sentiment vs. Fundamentals
Even when overall earnings and free cash flow remain strong—as reported in various market discussions—the share price can lag because investors are pricing in uncertainty about profitability trends or strategic direction. 

⸻

🪞 So What’s Really Happening?

When Constellation Software’s stock falls:
• It’s often fear or uncertainty driving price, not necessarily deteriorating business fundamentals.
• Leadership changes + sector narratives can outweigh positive earnings or cash flow in the short term.
• Technical trading patterns and valuation psychology can accelerate moves once they start.

In short:

The stock price can fall even when the company is doing fine — simply because investors feel unsure, reprice expectations, or shift narratives.

That’s not unusual in markets, and it’s why price moves don’t always equal financial failure.