Stock price when the opinion was issued
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.
(Analysts’ price target is $38.50)(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.
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.
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.