skip to content
  1. Home
  2. >
  3. Investment Q&A

Investment Q&A

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

Q: Peter and Team,

I am a shareholder of CSU and am interested in the debentures they are issuing. I have a few questions: first, does it make sense to buy more stock now to get more rights to get debentures at a $95 per $100 par value or should I wait for the rights to come on the exchange and buy them then? Second, I think the debentures are supposed to yield 7.4% compared on the par value and then reset to 6.5% + CPI annually. Is my understanding correct? Third, I think that the floating nature of this debenture should make its capital value stay pretty flat even in a rising interest rate environment as long as CSU's credit-worthiness is good. Any thoughts on this?

Thanks!
Read Answer Asked by Marc on August 13, 2014
Q: Thoughts on the subordinate debt Constellation (CSU) is offering? Joel Greenblatt wrote a good book on making money in odd deals like this. His thoughts are the big holders create initial selling pressure bc they either specifically invest in equities or the position wouldn't be large enough. Then one could pick up the rights at a discount and to purchase the debt at discount. At $95 for $100 debentures with 7.4% yield your essentially getting a yield of 13.1% annualized in the first year.
Read Answer Asked by Michael on August 12, 2014
Q: Thanks to your great service I have held CSU since mid 2012 and have been buying on the small pull backs. Currently at 6% weight. It has stalled or dropped over the last 6 months and have been patient because it has been such a good performer but is it time to move on with some or all?

Thanks again for your service
Read Answer Asked by Dale on July 29, 2014
Q: Hi Team..Peter - I do hope you are mending. I have sent in a contribution to your cancer ride and have my fingers crossed for you.
First question; I would like to increase my Info Tech holdings to be about 15% of my stock holdings. I own DH Corp, Enghouse, Constellation, Syologist and Avigilon all adding up to 11.6% of my entire 3 PFs (which have most of your 2 PFs stocks and a few extra. Any sugguestions for good growth over the next 2 years or so - small cap is OK! Or I can add to one of the above (which would you suggest?)My second question is I now have 38 holdings including some CBO CDZ ZRE and BYD.UN. Am I now too diversified??
thanks so much for all you do ...get better!
Read Answer Asked by El-ann on June 28, 2014
Q: My question is with respect to growth stocks which we know are rapidly losing favour in a shift to value stocks. In this environment and knowing declines could continue for some time, why would an investor not sell growth stocks and move to value stocks? It doesn't seem to me prudent to keep riding the wave down.But I know market timing is a mug's game.
Also, given its size, is Constellation Software (CSU) a growth or value stock or is it a bit of a hybrid?
Thank you, Peter
Read Answer Asked by Peter on May 12, 2014
Q: Hi Peter and Team, regarding Constellation, CSU, sorry to add yet another question here but would you please provide the estimates that you are comparing to compared to the actual results so that we can see what 'consensus was off a bit'? The estimates I get are usually different compared to what you usually provide and therefore have more faith in what you provide from your Bloomberg terminal, thanks.

This way we're all seeing actual results compared to the same estimate/consensus numbers you are comparing to. Thanks again!
Read Answer Asked by Hussein on April 30, 2014
Q: Hi, if someone beat me to it just ignore this, but I'm sure everyone is curious on your take on CSU quarterly earnings. At first glance they look good to me but I'm not sure how they compare to the "consensus" numbers. But if they are now at $2.50/share in earnings per quarter, isn't that now just a PE of 20 annualized?
Read Answer Asked by Kel on April 30, 2014
Q: CSU

Fastest turnaround ever on my question about the CSU AGM - thank you. But if they have not announced the AGM, and I only know about it via 5i as being in their lawyer's office which I don't know, and assuming they don't return my phone call I guess I am out of luck? I understand Mr. Leonard's legendary privacy concerns but trying to come to the grips with the legality/morality/transparency of this approach. Any further comments are appreciated and thanks.
Read Answer Asked by Kim on April 30, 2014
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!