It is about the guy who is running it.  He accumulated a serious of software companies that don’t get the premium multiple they deserve.  It is like Constellation Software.  He has tremendous cash flow.  At some point he will sell this company.  In the interim you have a nice steady company that generates a steady cash flow.

A software company that has been pretty aggressive on growth through acquisition, using their relatively highly valued equity paper to buy all these small companies, roll them in, and get synergies. Software in general is becoming a much more competitive from an M&A standpoint, so it is going to be harder to find cheap deals. Also, it is not the cheapest stock. He is not interested in this.

It was very much consolidating all of last year.  It looks like it is now trying to break out.  It tested recently.  You don’t want to see that broken. 

It is consolidating here.  He would like to see it take out its previous highs based on improved financial metrics.

A sideways trading stock, but there is not a lot of downside unless it breaks $50. Also, there is not a lot of upside, beyond $55 maybe. If you can make 10%, 12%, 15% on every trade over and over, this is a no-brainer. For a “buy and hold” investor, he would probably avoid this stock.

Essentially a consolidator of software companies. Think of it as a smaller/younger version of Constellation Software (CSU-T), but trading at a little bit lower multiples. Like Constellation they have had a rough 2016. Likes the name, but probably prefers Descarte (DSG-T) in the sector. They have proven to be relatively disciplined as an acquirer. Not a bad name to hold as a long-term investment.

This has done well, but the stock has pulled back because of recent negative earnings surprise. However, it still ranks at 50 out of 700 stocks, being in the top 10%. PE on a trailing basis is not cheap at 35X earnings, compared to 13% earnings growth. The stock looks expensive. This typically grows by acquisition.