Teal Linde Lumine Group LMN-X DON'T BUY Feb 10, 2025

He got it as part of a spinoff from CSU. No issues with the company, well run. Valuation a bit rich. CSU is a lot more diversified, and that's his hesitancy in adding more. If you own it, hold. For a new position, wait for lower valuation.

Spun off from Constellation Software. Focus on communications and the media industries. Have a huge addressable market. New capital deployed returns at least 25%. Top managers. He sees Constellation-like returns for years, maybe higher. Are in a red-hot market to make acquisitions and expects a large one to come.

Great run, but now a pullback along with the sector. Not a tremendous runway ahead. Topped out around $37-38 a number of times. Take some profit above $35.50-$36. If it breaks out above $38, get back in.

Excellent company with strong prospects. Will continue to own. Spin off from Constellation software. Will continue adding when share price is weak. Excellent margins with software products. Able to do large acquisitions. 

(Note the short timeframe.) 
Just getting started. Just announced phenomenal growth and results. Demonstrated proof of the business model by making highly accretive acquisitions and integrating well. ROIC can be more than 25%. Will keep acquiring at high rates of return, which increases intrinsic value per share. Absolutely would still buy here.

Shares financial characteristics with CSU. In contrast to CSU, does a smaller number of larger acquisitions. Sold off on news of the (excellent) CEO temporarily stepping down, should be back mid-February. A short-term issue, so buy here, tuck it away, be happy down the road.

Used to own. Sold on valuation, which is higher than CSU or TOI. Higher risk but higher reward because its deal sizes are so big. At the high valuation, wasn't worth the risk to own anymore. See his Top Picks.

It is a spin-off from CSU. It specializes in carve-outs and the advantage is that the selling company is not necessarily looking for the highest price. It has run up a lot so the evaluation is quite rich. 

Acquisition integrated extremely well. Has proven whole business model. One of the bests compounders in Canada. Increasing opportunities to deploy capital. Expecting another acquisition this year. Very strong buy at these levels.

Ideal would be to own the whole ecosystem of LMN, TOI, and CSU. But LMN is the most exciting one today.