TMX Group (X.TO)

X has fallen from $58 to $54 over the past month, but it is still up 22% year-to-date and 25% on a one-year basis. Despite the recent negative price action, we view its overall trend as still very much intact, and we think this type of consolidation is healthy. It trades at 26X forward earnings, and we are not concerned by this recent move. We would be comfortable slowly averaging in here, or adding a new position.
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Slogan for good stock candidates:  "The longer the base, the better the case." This chart had a big base for several years. Then it broke out, and look what happened. You can see this over and over again in stocks. 

Moved into an uptrend, arced off aggressively. Now pulling back from being overbought, will likely retrace to somewhere near the trendline which is probably somewhere near the 200-day MA (don't expect it to hit exactly). Not a disaster at all. On the chart from Feb-April of this year, those previous buyers may sell if it breaks that level of ~$51-52. Keep an eye on that.

He likes the sector but it is not really a small cap now so he doesn't own it. It created a lot of value with their strategies and carved out out some very unique assets. He feels the value is a bit stretched. He owns Euronet which trades in France

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.

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.

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

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.

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.

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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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.

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.

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. 

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. 

Stock exchange plus sells data. Good businesses. Fewer IPOs contributed to a slump, but next year will be better. Will grow its data offerings through AI. Good investment over the long term. Not a bad place to buy here.

Business depends on new listings, and right now there are fewer IPOs. It's grouped as a financial, but he sees it as a tech platform, and that's where the difficulty is in assessing it. Not looking to buy.