Lumine Group (LMN-X)

Excellent company with strong prospects. Will continue to own. Spin off from Constellation software. Will continue adding when share price is weak. Excellent margins with software products. Able to do large acquisitions. 

Great run, but now a pullback along with the sector. Not a tremendous runway ahead. Topped out around $37-38 a number of times. Take some profit above $35.50-$36. If it breaks out above $38, get back in.

Spun off from Constellation Software. Focus on communications and the media industries. Have a huge addressable market. New capital deployed returns at least 25%. Top managers. He sees Constellation-like returns for years, maybe higher. Are in a red-hot market to make acquisitions and expects a large one to come.

He got it as part of a spinoff from CSU. No issues with the company, well run. Valuation a bit rich. CSU is a lot more diversified, and that's his hesitancy in adding more. If you own it, hold. For a new position, wait for lower valuation.

Excellent company that continues to own. Spin out from Constellation Software. Active in media and communications sector. Larger M&A that has been very secretive. Long term - excellent business for shareholders. 

Great performer. Reasonably priced, trading around where CSU (its original parent) does. More European-centred than CSU.

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 ;)

Pretty fully priced. Mini-CSU in media and communications. Strong track record of success, long-term focus, experienced management team. Strong and sticky customer base. Acquisition strategy not as deep. If you see it in low $30s, add.

It was spun off from Constellation Software about a year ago. It is in the same business of Vertical Market Software but differs in that it focuses on media and telecommunications and does larger deals. It also specializes in corporate carve-outs, buying a division of a big company. Its pace of acquisitions is good and the CEO talks to the street more than CSU or TOI. We can expect returns similar to those of CSU

Boyd has good operations and is a consolidator of collision centres. Has grown from a small cap to almost a large cap. It is not super cheap and needs bigger acquisitions to move the needle.
A second part of the call was on Lumine. Buy it for the long term - with hopes for similar returns to CSU.

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.

Both the increased share count and the loss relate to the conversion of preferred shares by CSU, and the set up was done this way to reduce taxes and faciliate the LMN spin out to shareholders. Both the loss and the share conversion were fully expected and disclosed a year ago, and going forward neither will be an issue at all for the company. We see LMN as one of the best long term buys in Canada. Not risk free, but it has already done very well and its acquisition strategy is working solidly so far. 
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Has since sold shares and bought Constellation Software. Strong business in software acquisition sector. Focus is on small software companies with zero competition. Expects strong performance going forward. Good long term investment. 

Stock took off. He took profits a couple of weeks ago. A bit rich now. Buy it under $30, at $28, and around $26.

Sometimes the good ones don't give investors much chance to buy. We would be OK in the $30 range if one has a long term holding period. Buying a partial position and waiting is also an option (but of course doesn't always work, either). 
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