Investment Q&A

Q: For a dividend investor,would you consider this a good and safe investment given the stability of the company and the fact that an increasing interest rate environment should be inflationary?

Q: just to clarify the question from Allan re CSU.db
I have owned since day 1 and there has always been a misunderstanding on how the interest rate each march is calculated.
It is NOT 6.5 plus the rate of inflation but rather 6.5 plus the rate of CHANGE in the inflation number at the end of the year. IF the rate is neg then it would be 6.5 minus rate of change. Never to go below zero ( as per csu. lol)
So if the rate of inflation is 2% greater then the yr before and is 3.8 % then it is 6.5+ 2
NOT 6.5 plus 3.8

Q: The Constellation Software debentures, CSU.DB, seem like such a great investment, I wonder what the hidden downsides might be. They pay 6.5% plus CPI inflation – currently about 2% - which is a very high rate compared to ETFs like CLF, CBO, CPD and XHY and also compared to other blue chip corporate bonds in Canada. Moreover the inflation protection is an increasingly attractive feature. There is of course the risk of losing principal if CSU goes broke, but it is a great company with lots of sticky revenue and this seems highly unlikely, at least for the foreseeable future. The price of these debentures has been bid up, but the yield to maturity is still quite high. Are there other reasons not to give CSU.DB a large weight in one’s fixed income allocation?

Q: Just to note that there was also a ratings upgrade on CSU per Globe Investor on Tuesday:
Scotia Capital analyst Paul Steep upgraded Constellation Software Inc. (CSU-T) to "sector outperform" from "sector perform." Mr. Steep increased his target to $850 from $740. The average target is currently $750.

Q: What 5i stocks (portfolio and rated/covered) are making new highs these days?
Cheers

Q: Hi Peter and Ryan,
Would you consider Chesswood group a long term hold as the stock hardly moves and if it does, it is to the downside. It does have a nice dividend but given its performance, it is not a good enough reason to keep it. Your thoughts please. Also, i am thinking of increasing my weight to 5 percent for Savaria or Constellation software. I am leaning towards Savaria (growing sector, decent dividend, good momentum), but your thoughts please. Thanks very much.

Q: Constellation buys Acceo for C$250MM which might represent around $30-40MM of EBITDA. Whereas today CSU's market cap goes up $1.1B on a generally soft day. I'm pleased as CSU is one of my larger positions, however, is this market reaction seem appropriate to you or is something else going on? Or am I just over-analysing things? Thanks!

Q: Constellation Software announced this morning of a nice acquisition of Acceo Solutions for a price of $250 mln.
Q1: Seems like a good size acquisition, after some time. With annual proforma revenue of $116 mln, how significant is this transaction ?
Q2 : What is your understanding of the proposed financing ?
" Constellation expects to finance the Acceo acquisition on a stand-alone basis. This is a continuation of Constellation’s use of leveraged capital structures to compete more effectively for larger vertical market software businesses. "
Thanks

Q: Hello Peter. What do you think about the $250M deal that CSU announced this morning, and what do you think it will do for CSU's outlook and share price going forward in the near/mid-term?

Thanks,

Q: Hi 5i Team Please rank these stocks in order of preference would like information on which has the most growth potential in terms of share appreciation. CSU MG AVO COV GC OTEX Thanks Claude

Q: Hello 5i Team,
What do you think of CSU at its current valuation and its future growth prospects going forward? (Long term hold)

Thanks

Q: Why was Telus dropped from the Balanced portfolio?
At current price levels, which 3 companies in the Balanced portfolio are attractive to buy if one didn't have any?

Thanks!

Q: Following your balanced portfolio. still have not purchased the above stocks. Give me your top 3 from the list above in order. Have a 5 year time frame. Thanks for all your help. Is this a good time to buy?

Q: I've been a long time holder of Constellation Software recommended by you. Thank you so much.

My question is in regards to the companies that Constellation acquires. I notice only a few deals through press releases, but if I were to go into the quarterly statements I see way more companies being acquired. Why is Constellation being selective and only publishing some deals and not others? Is there a criteria for this or is it just up to them what they disclose to public and shareholders?

Q: Constellation Software got lumped a bit after announcing their new deal. Can I please get your opinion. Thanks !

Dave

Q: Your answer to Don today re the best tech stocks are CSU KXS DSG & SHOP.In today's market,please rank them,best first.Thanks for your normal great services & views,Ryan was great on BNN market call,Great answer to my Q on KWH.un resulting in price increase

Q: rather than BB what is your best bet in tech for 2018?

Q: Is this a good time to buy CSU or should I wait?
And CXI, I am down 25% and waiting! Should I sell?
What is your opinion of HBF?
Happy New Year and thanks,
Connie

Q: On December 22, 2017 the 3 stocks concerned concluded the day at $8.28, $767.34, and $68.92. I assume all should be kept for the future. Only GUD is presently is at problematic value. In agreement ?

Q: This is a follow up to a recently answered a question about the p/e on CSU but pertains to other companies as well.

When calculating this valuation metric, is the share price in Canadian Dollars and the earnings in US dollars? Or is there an adjustment made to have the same currency in both numerator and denominator? If the currency is not adjusted then the p/e would be artificially inflated by 30% or so.