Barry Schwartz TMX Group X-T COMMENT Jul 18, 2017

Very strong business with excellent business model. Stock performance has been very strong. Data and analytics business also expected to rise. Steady dividend growth with 2% yield. Trading at 20x earnings. 

Recent all time high in share price. Owns shares and will continue to own. Capital light business that is able to generate strong profits. Well executed investor day recently. Has a diverse offering of trading platforms. Would recommend holding for the long term investor. A majority of revenues are recurring which is excellent for profits. 

Great company, especially in the context of Canada. He has a few questions about its capital allocation as it's moving into the US, goals seem a little ambitious. Quality firm, generates a lot of cash. Don't chase; valuation is mean reverting.

Keep it on your watchlist. Pick away as the valuation comes down.

Rising with the market. Pop in July. We've had a correction, but it's important that it hasn't corrected back to where it broke out at $38.50. At this point, it's just a correction within an uptrend. On RSI, nicely in the upper half, doing pretty well.

We continue to like TMX group. They should continue to benefit in an uptrending market and from a valuation persepctive, given the stability and steady growth, we don't view the 23X P/E as particularly 'challenging'. If a bit more deal activity comes back in the New Year, TMX should see an extra tailwind as well. For entry price, we think something in the range of low to mid-40's here makes sense.
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One of his largest positions. Very well run. Likes that it got into owning and selling proprietary data for ETFs and the energy industry. Phenomenal business model. Double-digit grower. Valuation quite reasonable. No plans to sell.

One of his top 10 positions. All of the exchanges are trading well. Volumes are strong. Has held up during recent weakness. Trading better than 92% of companies in the S&P over the last 12 months. Nice steady earnings growth ahead of it, nice dividend growth.

Consistently does well. You might want to wait for it to pop down. Decent one to buy now and hold for 5-6 years.

Fingers in a lot of stock-exchange pies. Companies pay to keep stocks listed. Fees from trading activity, which has been fast and furious. Options market has been even more frenetic. Also has sticky recurring revenue businesses, which are less cyclical. In his dividend growers mandate. Globally diversified.

A wonderful performer in recent years. Not just the TSX, but they have businesses around the world like trading platforms and economic data/analytics, based on subscriptions, so lots of recurring revenues. Their results may move a little due to trading volumes and new listings, but TMX is so diversified that enjoy recurring high margins. The stock has been on a tear, and not cheap now. One of the best companies in Canada.