Q: Any idea why CSU and LMN have gone to the moon in the very recent past? I know CSU has a stellar history and story, but really.... Sure CSU fundamentals are great, but it is behaving like NVDA has in the past.
5i Research Answer:
LMN had been largely ignored since being spun out, but started to gain traction recently as the company announced large deals that would help LMN compound capital at a high rate in the near term. Q3 growth was 99% and we think that got investors to sit up and take notice. On the other hand, CSU has gained more meaningful attention from mainstream investors and financial media especially recently after its spectacular performance. It has been called the 'Berkshire' of Canada in US investment circles. The share prices of both could move slightly ahead of themselves, but great businesses are rare and could be bid up by investors sometimes. We still like the prospect for both over the next five years.