Open Text (OTEX.TO)

Very good stock. Sold his holdings too soon, because of the lack of organic growth in their last quarter. Normally he doesn’t put a lot of value in growth by acquisition, however in this environment of low interest rates, growth by acquisition stories have worked and probably will work for a while. With their last acquisition, you are going to see EPS growth very nicely. A weaker Cdn$ is good for this company. They have R&D and head office costs in Cdn$ while their revenues are about 95% US and Euro $’s.

Grows 20% year after year after year. Terrific company. His third largest position.

When they made their recent acquisition, it really jumped up on his radar as a pretty good value creation. An accretive deal. Valuation discount versus its peers is quite substantial. This, coupled with their new Red Oxygen product that they are coming out with has a lot of different modules for the products that they have, should do quite well for them in the next 2 years. Trading in the range of 14-15 times next year’s earnings. Peers are in the range of 19 or 20 times. Yield of 1.4%.

One of the largest software companies in Canada. Growing over 25% a year for 5 years. Ramping up sales force, M&A team has been built up. Well followed by Bay Street. Earning are coming in close to as expected.

Likes this. A little bit on the unglamorous side right now because there is not a ton of organic growth but ROE is high. Building a cash base from which they can do further acquisitions. With all their return on capital, there is going to be one of 2 or 3 things that are going to happen. They will do an acquisition, buy back stocks or raise their dividends.

Delivering on all their platforms. Migrating towards the cloud-based services as well. Have done acquisitions in the past couple of years. Trading around 10X the current earnings. Has global exposure. Substantial free cash flow. P/E ratio is about 10X.

Has quite an interesting looking chart. It shows a bit of a consolidation between May and August with an aggressive bottom forming at the end of August and is now coming back to the resistance level. In the short term, there’s a possibility of a return to the low $50. Wait to see if it can bounce off of that.

Have just changed CEOs so there is a bit of integration going on. Still about 40% exposed to Europe, which weighs on the stock on an ongoing basis. Have a lot of revenue drivers going forward. In an area called Enterprise Content Management and have done a good job here.Have just changed CEOs so there is a bit of integration going on. Still about 40% exposed to Europe, which weighs on the stock on an ongoing basis. Have a lot of revenue drivers going forward. In an area called Enterprise Content Management and have done a good job here.

This is a truly great company. Largest independent left in management solutions space. In its acquisition trail, it created a lot of decentralized companies that managed themselves individually.