Stock price when the opinion was issued
Usually in technical analysis you buy the breakout, especially when the chart shows a staircase pattern. Rally, consolidation, rally, consolidation, and so on. Some people say wait for a retest, which is about $4400. Risk is that it doesn't retest and just keeps on going. It becomes a bit of a coin toss.
Technically, there's a very significant technical breakout underway. Highly ranked on an RSI basis.
It is still growing by over 20% per year and trailing less than 20 X earnings. He is looking for a stock price 20 to 25% higher a year from now. It is getting international notice. Acquisitions are generally small and not big company changing ones. It is the best roll-up stock in Canada and one of the most attractive companies for new investors to buy. They don't do analyst calls.
Awesome compounder, strong uptrend. Only concern is that if we are, indeed, late cycle, infotech is going to be at risk. Don't put too much new $$ to work here. Wait for the bigger correction of a hefty 15-20%, likely later this year.
This name has a higher beta, and beta tells you how sensitive a stock is compared to the market.
He targets $4,900. It hasn't been hit like Shopify or Celestica, because CSU has so many horizontals. Microsoft has a software that is applied in many ways, but CSU is different. CSU applies their various software to specific industries, like a healthcare vertical/software. This diversification lowers volatility. Likes it.
One of a kind. One of the best compounders in the world. Big misconception is that the total addressable market is not that big. Fear that can't deploy capital for the same rate of return going forward as it has in the past. He very much disagrees with that.
The addressable market is huge. Of course with a larger acquisition, you can't expect the same 25-30% after-tax rates of return. But on a blended basis, can still compound at very high rates of return. Yield is 0.13%.
Now in an uptrend. Tends to make a new high, pull back to the trendline, and repeat. Previous rallies each lasted a few months. This rally is just getting started, and he'd think you're going to get a little more upside before you get the pause that refreshes. Unless you're into super-short-term trading, stay with this until it ends.
How do you know when it ends? When it breaks the last low and takes out the 200-day MA. Doesn't look as though that will happen for a while.