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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I went back to Constellation Software’s old reports to compare results to Topicus’ current results. Constellation had similar revenue ($891m USD) in 2012 to Topicus in 2021 ($846m USD).

Here are the revenue growth rates for those years:
CSU : 15%
TOI: 50%

Here are the acquisition amounts in those years:
CSU: $141m USD
TOI: $385m USD

By the numbers, it would seem that Topicus is significantly more aggressive in terms of growth by acquisition than Constellation was when it was the same size back in 2012.
My question is can Topicus keep this rate of acquisition up over the next five years or so, or are they picking off the low hanging fruit and things will get much more difficult down the road? Thanks
Read Answer Asked by Michael on February 14, 2022
Q: Hi Peter and team,

Do know where I can find institutions, such as Canadian Pension, etc, are buying LSPD or any other stock at current level? I heard some institutional buying LSPD, could you please confirm and have more information and list a few of such buying?

Thanks a lot
Read Answer Asked by Jinlong on February 11, 2022
Q: Hi Team,
Hypothetical question. I have read certain clips or articles of people thinking that Topicus can have more potential growth wise than Constellation in the long term because they are perhaps more aggressive. Is there any truth to this? Also, your best educated guess... do you think eventually TOI will be able to end up with the same market cap (todays numbers) as CSU within the next 10yrs or so? Just trying to guage the real long term potential of this company. Thanks

Shane.
Read Answer Asked by Shane on February 10, 2022
Q: How strong is the Visa moat? Is it vulnerable to disruptors? Will big players like Amazon going their own way be a material hit overall? Is there still enough market share to gain from cash payments globally to continue the growth rate that supports the valuation?
Read Answer Asked by Benjamin on February 08, 2022
Q: I’ve read the previous questions about AAPL’s movement into the payments space and their direct challenge to SQ. I have LSPD, NVEI and GSY in the financial space. Given the potential reach of ApplePay and the evolution of Buy Now Pay Later (along with other innovations I may not even be aware of), could you please discuss potential future challenges that may negatively impact the 3 companies I hold. Thanks!
Read Answer Asked by Warren on February 08, 2022
Q: When looking at all my accounts, I am slightly overweight in DSG but I also own TOI and TIXT. Long term investment, would you reduce exposure to DSG to increase TOI and TIXT. Which one do you prefer and why? Selling a portion DSG would not trigger a capital gain since in TFSA and RRSP. Thank you.
Read Answer Asked by Pierre on February 08, 2022
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