Sylogist Ltd. (SYZ.TO)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock can probably keep up the momentum to a point. The recent acquisition looks good. Trading volume is improving. It is up 40% and the trend is good. Unlock Premium - Try 5i Free

An enterprise software company that made a bunch of acquisitions over the last few years. You are investing in management and their ability to deploy capital. He likes it. He cautions that you have to pay the right price for the stock.

A software company in a number of different areas such as healthcare and government management. It has been weak recently. The last quarter was a bit of a miss. They have gone on pause a bit. No debt and they are looking for an acquisition for their cash.

They do a lot of very niche software where there is not a lot of competition. They have pricing power. They just keep generating cash flow. He owns about 9% of the company.

He recommended it at $2 his first time on BNN. It is too illiquid for the size of the fund he is managing. He likes the management team and thinks the stock will eventually go up.

They deal with a lot of payroll management systems, and with the retail systems for some gas stations. They do everything from municipal assets to fracing. A very small company, but do a lot of things that people just don’t do or care about. It falls below the radar. Hopefully over time they will be able to find further deals. When they bring a company on, they essentially aim to better price their products and get a lot of cash flow from it.

He covers this in his model portfolios, and really, really likes the company. They have great software for many different clients. Good management. Pays a good dividend which has had a very, very good growth rate. Revenues are starting to increase. They are buying back stock. Yet no one really cares, which is quite surprising. Business is starting to pick up. They signed a deal with Microsoft (MSFT-Q), which creates long-term opportunities. He wouldn’t get over excited about it this quarter, but it is a good deal to have for small Canadian company.

A software company that really hasn’t done a whole lot this year. Has it in his model portfolio. Investors are waiting for them to do an acquisition. Sitting on more than $40 million in cash and paying a nice dividend. Valuation is okay. A solid company. Insiders are starting to buy again. It is relatively expensive, but their past performance justifies that premium.

A software provider that focuses on government entities, CRM, healthcare and education. They basically just make their clients software work a little better in data access management. Relatively small. Pays a dividend. Sitting on $41 million in cash. Have done a couple of good acquisitions. Has a very solid reputation of raising their dividends. They have high margins. However, it has had a tough year being down 20%-25% this year. Thinks investors are just waiting for that next acquisition. You’ll probably see another deal in the balance of this year. Nice little company.

(Market Call Minute.) Software company based in Calgary. Does a lot of stuff with the government. Stock is expensive, otherwise it is great. Look to buy at something closer to $5.50-$6.