Review of Lumine Group Inc.

Q: CSU has grown too large a position in my portfolio, and I am very reluctantly (sadly even) forcing myself to sell a portion.

Along with some additional free capital, I am considering adding four new positions.

I am indifferent to industry, size or region. This is all about growth.

I am willing to hold for many years, but I want companies that are proven winners and very well-positioned to grow aggressively in the long term. Ideally, companies that are standouts in their industry.

How would you rank the above positions in terms of risk (1-10), short-term growth (1-10) and long-term growth (1-10)?

If you have additional suggestions not on my list that may be more suitable, please include them in your analysis.

Thanks for your outstanding service. I owe the bulk of my financial success to you and your team.

Subtract as many credits as needed.

Q: I hold these equities in my grandson's RESP. He will need to access funds in 2 years. He will enter grade 11 this September. I just sold half of the CLS holdings at 120% gain. Above % represents post sale. I am thinking of putting cash into BEP.UN or BIP.UN. what additional adjustments would you make at this time?

Thanks for all your help.

Mike

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.