Constellation Software Inc. (CSU.TO)

Has executed incredibly well--they know how to buy and grow software companies that need help to grow. Valuation has always been high, though.

It is in a good long term trend. It is maybe overbought and will likely pull back.

They missed recently and an acquisition isn't paying off as expected. It's always grown well by acquisition, but the bigger you get the bigger the companies you need to buy and more to pay. Trades around 18-20x cash low, but other companies trade at half that. 

Really nice uptrend since the end of 2022. Uptrend of higher lows is still there. In his RSI rankings, one of the top 3 stocks in NA even with the pullback. He continues to hold.

Investing is all about predicting the future, and are you paying a reasonable price for that future. You can still find good ideas even at 52-week highs. Still making acquisitions. Overpriced in the short term, but expects it to go a lot higher over the long term.

He's waiting for a nice pullback to buy more.

We would still be comfortable buying it for the long term. As a premium company, the stock rarely, if ever, gets 'cheap' on valuation. We just wanted to note that it is more expensive than most stocks, but deservedly so. 
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A strong balance sheet, but the gap is increasing between its share price and fair market value in recent years. Has nice support at $3,900, which is safe.

It is a great company with a great track record and solid future. It has spun off other companies. The bigger it gets, the more complex it is to acquire small companies and absorb them, but it is doing well at it.

Performed very well, an outlier to most Canadian tech. Chart moves up, consolidates, and now it's legged up. Will probably consolidate, growth won't be the same as in past year or so. Over time, will continue to be a solid name. See his Past Top Picks.

The TSX darling. They buy software companies regularly and merged them vertically. Their only challenge is that as the company grows, so must their acquisitions--and they must continue to be accretive. Loves this. Will keep buying shares.

Will continue to own shares. Very strong business. Capital allocation skills very high within management team. Vertical integration of software business is proving very profitable. In reality, private equity company that acquires software companies. Very strong business model. Recurring revenue with mission critical functions (customers need it). 

Trading in a sideways range between $3900 and support around $3550. He likes to see this consolidation, especially if it hasn't gone down or broken down, as it suggests very solid accumulation underneath. 

$4000 is a big round number, could present significant resistance. If it went through, that would be a breakout, and measuring $400 from the channel would suggest the next resistance would be around $4400.

CSU is a “one of a kind” software company as the company did not pump up its AI theme compared to other Saas businesses. CSU grew through small acquisitions, while most public Saas grew by acquiring customers through marketing spending. CSU has no stock-based comp (SBC), while most large public SAAs have a large SBC as a component of their cost structure. CSU is unique, and what determines the share price performance is fundamentals. AI could make CSU’s offerings become more efficient, adding value to its customers, and therefore, making price increases easier, but it has never been the core selling point of this vertical market software.
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Makes small acquisitions, doesn't overpay, cautious with the balance sheet. Lots of great opportunities going forward. He likes the up-and-to-the-right businesses.

Grows at 20% a year. Hints that the next spinoff will be its transportation group. With each spinoff, most of the cashflow and earnings stream back up to the parent. Thinks stock will be worth 20% more a year from now.