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  5. CTS: hi, can I get your current thoughts on these 3 from the growth portfolio ( I see they are all down in price since purchase ). [Converge Technology Solutions Corp.]
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Q: hi, can I get your current thoughts on these 3 from the growth portfolio ( I see they are all down in price since purchase ). buy, sell, hold? cheers, chris
Asked by chris on June 06, 2024
5i Research Answer:

We like all of the names listed, and would be comfortable buying any of the names at current prices, although we would be slightly more cautious on DCBO as we would like to see it continue to break higher into the $50s. 

CTS faced a challenging macro environment in 2022 and began recovering in late 2023. We feel that it is on a path to recovery and we like its improving results. TSU is a high-quality specialty insurance name that was a spinoff from Brookfield, and while it has traded mostly sideways over the past few years, we feel that its headwinds of asset impairments are largely over and that it can benefit from its high-quality management team and fundamentals. DCBO is a learning management software (LMS) platform that aims to help modernize the learning management platforms for enterprises and governments, and while concerns over a high churn in its small and mid-sized business segments are putting pressure on share price, its tailwinds and pipeline for growth through the government sector are encouraging.