Stockchase InsightsTopicus.Com Inc.TOI.VBUY ON WEAKNESSJan 24, 2022

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. 

Topicus.Com Inc (TOI) whose was up 19.3% in the period, 26.25% YTD, and 7.85 for one year. 
TOI was formed by Constellation Software (CSI) giving off the assets of its Netherlands subsidiary to TOI and then dividing some 39 million of its shares among CSI shareholders. 
TOI is controlled by CSI through its ownership of 1 super-voting share (gives it 50.1% of aggregate voting shares outstanding). 
There is a substantial non-controlling interest in TOI such that net income for equity shareholders amounted to 17.0 euros which was up 41%; free cash flow available to shareholders at 18.6 euros was down 10%. Essentially, TOI is a subsidiary of CSI which is a large and successful software provider. TOI seems to be progressing satisfactorily.
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Listed on the Venture Exchange because when CSU spun it out, wanted to keep it off the radar and didn't want to pay high listing fees of the TSX. He hasn't examined the latest results, probably relatively good. Financials are frustrating, messy. If it can come close to replicating the success of CSU, should do well. Higher organic growth rate than CSU. Note that CSU won't announce any acquisition unless it's more than 100-150M. To find this information, you need to look at the underlying business groups. TOI has been active. This environment is more favourable to both TOI and CSU making acquisitions. Exceptional capital allocation skills. Good for growth part of a portfolio.

Spinoff from Constellation Software.
6th of a size of Constellation Software.
Consolidator of small software companies. 
Very strong business that will be good for long term shareholders.
Would recommend buying.