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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: Good Day,
Is the recent discussion around CSU debentures referring to a new series? I see debentures are already trading in the market and today are priced at $119.66 with a 7.10% yield to reflect the premium. Is there another series coming in Sept? If so are they the same terms as the first tranche? Looks like 8.5% until March 2016 and then 6.5% plus CPI. Most bonds/debentures would get whacked in the next few years if/when interest rates begin to rise but this indexing to inflation will protect against this? Also do you have a credit rating on this as far as credit quality/worthiness? Thank-you
Read Answer Asked by Chris on August 26, 2015
Q: Peter/group I have a right offering on CSU The present cost is 32 cents /share which will allow me to purchase more shares at the present market price of $120. It also pays me 8% in interest ...is this a good investment? Thanks PS I do not fully understand the offering if you could clarify it for me in simple terms. Thanks for steering us poor mortals in the right direction
Read Answer Asked by Terence on August 25, 2015
Q: Anyone who put in a “STOP” was murdered today .
CSU traded as low as $454.00 today … shares were picked up by traders who had software that shows the stop orders on their screens…
By US standards CSU trades relatively thinly - buying the entire sell board of CSU is a no brainer for Goldman and others ... the retail investor is a victim who can't even protect his wealth.

There is NO price low enough to prevent deep pocketed vultures because Level 3 Quotes are available to the privileged few . This is unfair ... and I am angry. I guess this is why you aren't a fan of Stops.
Read Answer Asked by Thomas on August 24, 2015
Q: CSU has fallen dramatically in the last week and I can only attest to 'one' proven fact -- the Frank Effect. My brother purchased this stock this week, and true to form, every time he purchases a stock, it plummets. If you feel it would be of use to your members, I would be pleased to share with everyone when Frank wishes to buy shares in a company -- in that way, we could all avoid some serious losses in our chosen companies. I am concerned enough about this stock market phenomenon, that I make a point of having a portfolio diverse enough from his. Share if you think it's important. : )
Read Answer Asked by Sylvia on August 07, 2015
Q: Hi, What would be the impact of CSU being added to S&P/TSX 60 indices, effective July 24, 2015?
"S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices
17:15 EDT Tuesday, July 21, 2015
Constellation Software Inc. (TSX:CSU) will be removed from the S&P/TSX Completion Index and added to the S&P/TSX 60, 60 Capped and the 60 Equal Weight Indices. Constellation Software will not be added to the S&P/TSX 60 ESG Index at this time. Also, Constellation Software will be added to the S&P/TSX 60 Equal Weight Index at a relative weight equal to the relative weight of Catamaran at the close on July 24, 2015."
Read Answer Asked by rajeev on July 22, 2015
Q: Hi guys,

I'm looking at adding a growth stock with a modest yield to my RRSP over the next few months before October. Why would you recommend at today's prices from the following: Constellation Software, CCL Industries, Brookfield Asset Management or Magna. I know the companies and sectors are all a bit diverse, but I have room to add to all of these sectors without being overweight. I'm leaning towards Magna, but I wanted your opinion.

Thanks,
Jason
Read Answer Asked by Jason on July 13, 2015
Q: RBC came out with a research note on CSU this morning and a $475 target price (well below market price).

Do you agree, and can you comment on their observations I'm quoting below plse:

"In light of the divergence between Constellation’s current pace of acquisitions and valuation, RBC CM wanted to outline the conditions necessary and scenario for re-acceleration in acquisitions. The analyst believes a reduction in Constellation’s hurdle rate is needed to counter the elevated pricing environment and drive material re-acceleration in acquisitions. In the meantime, RBC CM sees acquisitions below FCF and Constellation deleveraging. RBC CM believes Constellation’s long-term fundamentals remain attractive. However, valuation multiples near the high end of Constellation’s historical range have diverged from its slower pace of M&A. RBC CM’s C$475 target equates to 16x CY16E EV/EBITDA on $519MM CY16E adj. EBITDA."

Thanks
Read Answer Asked by Sheldon on June 29, 2015
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