Q: Hi 5i - for those of us who didn't buy CSU (on the way up), do you think the price today is a good entry point long term, or would you wait (due to the current market volatility) and try to pick up cheaper? Thanks, Neil
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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 already hold a very small position of CSU in my TFSA that I purchased back in the $370 range (makes up 1% of my total portfolio). Technology is one of the sectors I want to increase my weighting in (7% currently, looking to go to 10%). Other Tech names held are GOOGL, ESL, AAPL, AVO, SYZ. I would add to GOOGL but paying +40% in USD at this point doesn't make it so compelling. So with it's recent pullback I'm looking at adding CSU. Can I have your straight up thoughts on adding CSU here? Thanks
Q: I received this message today and wonder if you can explain its meaning more fully please. I hold the stock and debentures. Thank you.
Constellation Software Inc. Announces Rating Assignment by Fitch
Jan 06, 2016 01:44 pm | Scott Denneny
Toronto, Ontario – January 6, 2016 – Constellation Software Inc. (TSX:CSU) announced today that Fitch Ratings has assigned the Company a long-term issuer default rating of `BBB-´with a Stable Rating Outlook. Fitch’s assigned rating and outlook for the Company does not reflect any credit risk from the Total Specific Solutions (TSS) entities, other than obligations related to the TSS minority owner’s put options.
Fitch has also assigned individual ratings to the Company’s unsecured subordinated floating rate debentures, Series 1, and $300 million revolving credit facility as follows:
Unsecured subordinated floating rate debentures, series 1 `BBB-´
Revolving credit facility `BBB´
About Constellation Software Inc.
Constellation Software Inc. Announces Rating Assignment by Fitch
Jan 06, 2016 01:44 pm | Scott Denneny
Toronto, Ontario – January 6, 2016 – Constellation Software Inc. (TSX:CSU) announced today that Fitch Ratings has assigned the Company a long-term issuer default rating of `BBB-´with a Stable Rating Outlook. Fitch’s assigned rating and outlook for the Company does not reflect any credit risk from the Total Specific Solutions (TSS) entities, other than obligations related to the TSS minority owner’s put options.
Fitch has also assigned individual ratings to the Company’s unsecured subordinated floating rate debentures, Series 1, and $300 million revolving credit facility as follows:
Unsecured subordinated floating rate debentures, series 1 `BBB-´
Revolving credit facility `BBB´
About Constellation Software Inc.
Q: Re: CONSTELLATION SOFTWARE INC UNSEC SUB FLTG RT S1 DUE 03/31/2040 INT 7.256 %
What is the schedule of payment of interest on this security? Is it still worth it for income?
Happy New Year to all at 5i,
Rick
What is the schedule of payment of interest on this security? Is it still worth it for income?
Happy New Year to all at 5i,
Rick
Q: Hello Peter and 5i team members,
I have CGI group in my portfolio representing about 4% of my RRSP account.Now I would like to add 1 or 2 names in IT sector to bring up my sector weighting to about 10 to 15%. Could you please provide some recommendations for a long time holding (say 5 to 10 years)? Thanks.
Wish you and every one of your team a very merry Christmas and a happy new year!
Lin
I have CGI group in my portfolio representing about 4% of my RRSP account.Now I would like to add 1 or 2 names in IT sector to bring up my sector weighting to about 10 to 15%. Could you please provide some recommendations for a long time holding (say 5 to 10 years)? Thanks.
Wish you and every one of your team a very merry Christmas and a happy new year!
Lin
Q: Hi Peter and team,
A recent question on ESL elicited the comment that it misses estimates about half the time.
What would you say about CSU - what is the approximate frequency it misses? I'm guessing it's lower.
Thanks,
Mike
A recent question on ESL elicited the comment that it misses estimates about half the time.
What would you say about CSU - what is the approximate frequency it misses? I'm guessing it's lower.
Thanks,
Mike
Q: What is the max weighting in any particular stock you would recommend holding before selling.
For myself I hold between ~50-60 different stocks.
Is this too many, and should I get into 30 or 40 positions, or what is the optimum amount of positions.
With this many positions should I get rid of ETF's as I should be diversified enough?
I have smaller than full positions for more risky and growth names, and i have up to 5.5% for stocks such as CSU and CCL.
Is it okay to let these run longer and up to what percentage of a portfolio?
I know you don't know my exact situation but I am looking for some boundaries or rules that I should follow?
For example: Optimum amount of positions for a diversified portfolio, and max weighting in any one stock. If diversified enough would you recommend letting go of ETF's. I hold 6 ETFs each at around 2%.
Thanks, Colin.
For myself I hold between ~50-60 different stocks.
Is this too many, and should I get into 30 or 40 positions, or what is the optimum amount of positions.
With this many positions should I get rid of ETF's as I should be diversified enough?
I have smaller than full positions for more risky and growth names, and i have up to 5.5% for stocks such as CSU and CCL.
Is it okay to let these run longer and up to what percentage of a portfolio?
I know you don't know my exact situation but I am looking for some boundaries or rules that I should follow?
For example: Optimum amount of positions for a diversified portfolio, and max weighting in any one stock. If diversified enough would you recommend letting go of ETF's. I hold 6 ETFs each at around 2%.
Thanks, Colin.
Q: Can you give me a site providing short interest for all TSE stocks rather than top 20? Looking for CSU short interest.
Thanks
Thanks
Q: When you look at the quality of a company, how important is looking at Return on Average Equity?
And can you please tell us what the ROE for CSU is in the latest quarter they announced?
And can you please tell us what the ROE for CSU is in the latest quarter they announced?
Q: Q3 report. Comment please.
Q: Hi, I would appreciate your comments on CSU earnings released Wednesday evening. Looks like a nice beat on EPS ($4.67 against $4.23 estimate)and EBITDA ($120 mln against $117 mln est). Currency headwind appears to have impacted organic growth rate for this quarter and 9 months period. Thanks
Q: Constellation will issue its earnings release tonite. Could you please advise what analysts' expectations are for CSU's results? And thank you for helping us soldier through this very difficult market. Peter
Q: Peter, I have owned CSU for quite a while and it is time to rebalance. I would like to keep my IT sector at 20% and I am thinking of selling CSU down to 5% and adding to my other IT stocks namely DSG, ESL and DH. Would you suggest I keep these four stocks or should I add another stock to this sector?
Thanks, Stephen
Thanks, Stephen
Q: I was hoping to get your thoughts on Venator's position on CSU:
http://www.venator.ca/uploads/FEB_2015__Final_.pdf
"I just don't like paying for acquisitions that haven't happened yet, and when you pay more than 20x earnings for an otherwise no growth company that is exactly what you are doing. This is why we own Open Text but not Constellation Software. If Open Text doesn't make an acquisition for the next two years it might drop about 10%, putting its valuation on par with Oracle (to name another low growth consolidator); the same scenario played out with the aforementioned Constellation Software would send that stock down over 30%."
CSU's share and earnings growth is largely based on its excellent ability to acquire businesses and less so on on its organic growth. If CSU is unable to acquire companies at the same pace (the larger it gets, the bigger the acquisition required to make an impact), would this not cause a material negative affect on its valuation?
http://www.venator.ca/uploads/FEB_2015__Final_.pdf
"I just don't like paying for acquisitions that haven't happened yet, and when you pay more than 20x earnings for an otherwise no growth company that is exactly what you are doing. This is why we own Open Text but not Constellation Software. If Open Text doesn't make an acquisition for the next two years it might drop about 10%, putting its valuation on par with Oracle (to name another low growth consolidator); the same scenario played out with the aforementioned Constellation Software would send that stock down over 30%."
CSU's share and earnings growth is largely based on its excellent ability to acquire businesses and less so on on its organic growth. If CSU is unable to acquire companies at the same pace (the larger it gets, the bigger the acquisition required to make an impact), would this not cause a material negative affect on its valuation?
Q: Read the recent questions re: CSU so will reframe mine as follows:
1. Globe investor shows forward PE at a very reasonable 16.3. Do you concur?
2. The stock has been trading in a range between 530 and 600 for the past three months. CSU has been a massive win for me but has shot up to 13% of my portfolio which I know is too high. It's probably time to abandon the "let winers run" approach and take some money off the table but the real question is this: knowing that a share split is not in the cards per the CEO, and with a tiny yield, have we had our fun? i.e. Do you see a scenario where the stock retests 600 let alone surpasses it?
Thanks as always for your insight.
1. Globe investor shows forward PE at a very reasonable 16.3. Do you concur?
2. The stock has been trading in a range between 530 and 600 for the past three months. CSU has been a massive win for me but has shot up to 13% of my portfolio which I know is too high. It's probably time to abandon the "let winers run" approach and take some money off the table but the real question is this: knowing that a share split is not in the cards per the CEO, and with a tiny yield, have we had our fun? i.e. Do you see a scenario where the stock retests 600 let alone surpasses it?
Thanks as always for your insight.
Q: Any idea why CSU is dropping like a rock? I've looked at three, five and even ten year charts on this stock, and it's never had a downward move as swift and far as this week.
Q: CSU seems to be very weak when compared to the TSX. I know there hasn't been any material news on this, but can you give us some perspective if this still remains a good stock to hold or even buy at these levels?
Q: Hi,
This stock seems to have lost its momentum compared to its peers. I have made good money on this and wonder if it's time to get out? I can't afford another AVO. What are your thoughts?
This stock seems to have lost its momentum compared to its peers. I have made good money on this and wonder if it's time to get out? I can't afford another AVO. What are your thoughts?
Q: Hi 5i
Any reason CSU took such a drubbing on Thursday? -$20
Thanks
Any reason CSU took such a drubbing on Thursday? -$20
Thanks
Q: Constellation Software just closed a recent round of debentures (http://www.csisoftware.com/2015/09/constellation-software-inc-completes-rights-offering-of-debentures/).
Has the company said what they will put the $214 million toward acquisitions?
Has the company said what they will put the $214 million toward acquisitions?