Q: Hello Peter,
Any idea why topicus is not participating as much as lumine group. The stock seems to be held in the trading range in the low 90s. I thought the fundamentals for topicus was good.. I am still down on topicus and was wondering if i should take a loss and move onto to lumine group. Thanks very much
Any idea why topicus is not participating as much as lumine group. The stock seems to be held in the trading range in the low 90s. I thought the fundamentals for topicus was good.. I am still down on topicus and was wondering if i should take a loss and move onto to lumine group. Thanks very much
5i Research Answer:
TOI is up 35% over the last year, so has still done well versus the TSX. Expectations for TOI, when it was spun out of CSU, were high, the valuation was bid up much higher than CSU due to TOI’s high organic growth (consistently in the 6% while CSU and LMN was low or negative), in fact TOI is the most expensive company in the CSU 'family'. LMN has also had some company specific news reently with the Nokia news which has helped with the recent run in shares.
We still like TOI, the valuation has gone down somewhat, now it is trading on par with CSU (cheapest now since being sput out), and don't see an outright need to make a change here.