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Constellation Software Inc. (CSU)
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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
Q: Hello! I own LMN.V, but I don’t have CSU or HSP.A. Are these tech companies similar? Should I consider them as a group purchase, or treat each name individually as a tech stock within my portfolio?
5i Research Answer:
We only consider LMN.V, CSU and TOI as similar serial acquirers of software businesses that grew through M&A and created value through capital allocation.
On the other hand, HPS.A is a niche industrial name that has a track record of growing organically over the years. We think investors can consider LMN.V, CSU and TOI as a group purchase for tech exposure and HPS.A as a separate exposure to the industrial sector