Investment Q&A

Q: Just curious: does 5i sleuth AGM's as part of the process of analyzing covered companies? Constellation has theirs on Thursday which is being held in what I assume to be their lawyer's office, which is the first time I recall such a venue for an AGM, and I wonder why? Thanks, J.

Q: Hi,

I'm looking at adding a large technology Company to my RRSP. I currently own Enghouse and I'm looking at adding either Open Text (OTC) or Constellation Software (CSU)? Any preference?

Also, Open Text is making an announcement tomorrow with the premier of Ontario. I assume its something related to additional investments in Ontario. What are your thoughts?

Thanks again,
Jason

Q: Howdy,
I wish to stock up on either CSU or STN.which one has more upward potential given their present prices.
many thanks
Art

Q: Hi Peter and team, Enghouse and Constellation are both down by more than 4% today. Is there any reason to worry? Thanks, Gervais

Q: Why did CSU plunge today? Do you still consider it a good long term hold?

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.

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

Q: Peter and Team,

Any further thoughts on Constellation Software's earnings and dividend? It looks like the market likes the earnings and they look good to me. I am continuing to hold this name. Any red flags to you fine folks?

Q: Hi there,
Could you please comment on CSU results?
Thank you,
Kerri

Q: What are the consensus adjusted revenue and eps numbers for:
BAD, EH, ESL and CSU?

Thanks very much,Sandy

Q: Hi 5i,
I see that CSU and ESL both report earnings this week. Is there any reason to suspect less than stellar results from these companies? Which would you prefer? I do not hold either - yet...
Thanks!

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...

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

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!

Q: Is it time to sell CSU? It's been a good run, but is this near the peak for the time being?
Thanks, Peggy

Q: Is there any scuttlebutt on the sell-off of Constellation Software (CSU) today? It's off approx 3.5%.
Thanks for the good work!

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.

Q: My portfolio is 95% in equities, a strategy that has been very successful for me. CSU has been a big winner, 13 bags in less than 12 months. I'm considering taking it up to a 7% overall weighting. Would you approve given your positive comments about the company?

Thank you.

Q: Peter and staff: I would like to balance my portfolio with an IT stock. I am considering either SYZ,OTC or CSU, I would appreciate your advice or any other suggestion
John

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