Topicus.Com Inc. (TOI-X)

It follows the Constellation Software model. It is European focussed which is perceived to be a problem and North America is more in favour at the moment. However it could spin the European situation into a positive situation. Their accretive acquisition model should be good. Don't look at the quarters but instead rely on management and the overall strategy.

Excellent business with very high growth rate, profits & revenues. Europe tech exposure very strong. Would recommend investing if want a good long term investment. Very similar to Constellation Software. Owns shares in portfolio. Expecting 25% appreciation on stock price annually. 

He sold and put proceeds back into CSU, the mother ship. Reasons included CSU still owning part of the spinoff. So when you own CSU, you still own part of TOI and LMN. Plus, analysis became simpler. CSU will probably do further spinoffs.

Now, stock price of CSU is high if you aren't awash in funds. His kids collect bottles and cans for extra money, and they can afford and own TOI shares, but not CSU. They eat their own cooking in the Del Vicario family ;)

This was the first Constellation Software spinoff and is essentially the CSU of Europe. It has a high ROC, high margins and just paid a special dividend. It has a great track record of acquisitions. It doesn't get a lot of attention and so is trading at a 20 to 25% discount to CSU and LMN and is the cheapest of the three.     Buy 0  Hold 1  Sell 0

He'd prefer CSU over TOI, but you should also look at LMN. LMN has done tremendously well since it was spun off. LMN was a vertical business that catered to agri, financial services, and education.

MSFT has software that goes horizontally across a whole bunch of industries, whereas CSU is more vertical. It's been very steady, even when the market goes into selloff mode. Has 5 operating segments.

TOI is out of Europe, and more on the engineering side.

Very good business model. Would not wait for a buyout from Constellation Software - business strong on its own. High returns on capital. Excellent management team. Good business overall for the long term investor. 

Still a bit of runway to his price target of $126. Rolled over a bit. Wait for a pullback. You could buy a 1/3 position today around $104, but you can probably get it around $95, and then $90 if you're lucky.

Exciting, because it's using the CSU playbook and growing faster. Acquires small software companies based in Europe, with lots of countries and lots of languages. Lots of runway. It's small, so small acquisitions can move the needle. Willing to take on more leverage. 8% organic growth. No dividend.

He holds shares from the CSU spinoff, but he hasn't bought any more. CSU has a unique business model, and you can't just easily replicate that in the spinoffs. He's more inclined to stay with CSU.

CSU still owns 61% of Lumina, so they're still driving the bus. Lumina geared towards media side. LMN is supposed to be the mini-Constellation. 

CSU has gone through its price target. LMN is under its price target. So LMN is probably a little cheaper.

He'd invest in all 3. Say you had $100K. He'd put 60% in CSU, and split the rest between TOI and LMN.

Lots of runway ahead. However, its primary business lies in Europe where geopolitics have held TOI back. Still, you can buy it here, then add more at $83 and $79.

Higher organic growth than Constellation Software. Good company that is able to generate high free cash flow. Would recommend buying and holding for many years. 

A trading stock, but will be higher in 10-15 years. He'd enter at $90-95. Constellation was smart to spin this out (they still own about 45%).

He follows it. It's pricey. It's had a good run and has passed its price target. It was spun off from Constellation. Why hasn't it transitioned into the TSX? They've done well in the past month by 8%. Buy it at $97 and then the low-$90s.

Very good business with excellent management.
Spinoff from Constellation Software.
High margin business with excellent return on equity.
Good long term prospects for business.
Will continue own shares.