Author Topic: CSU - Constellation Software  (Read 166083 times)

villainx

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Re: CSU - Constellation Software
« Reply #370 on: March 09, 2018, 04:32:34 AM »
What symbol do folks buy under?  Iím US based schwab.


Shooter MacGavin

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Re: CSU - Constellation Software
« Reply #371 on: March 09, 2018, 05:22:32 AM »
Its either cnswf , which is the us ADR or CSU.to

villainx

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Re: CSU - Constellation Software
« Reply #372 on: March 09, 2018, 08:23:03 AM »
I plan to attend the CSU AGM again this year and will be flying in on 25 April from Boston where I am attending the Tyler Technologies annual conference. Would be good to see you all again.

Any extra commentary on Tyler Tech? 

Sorry for the detour, but first time I came across this name, and going through the Constellation thread, and trying to get a little deeper into software, hoping to learn more.

Any podcast fans? http://investorfieldguide.com/savneet/  Invest With the Best latest with Savneet Singh - with some discussion on Constellation. 
« Last Edit: March 09, 2018, 09:16:26 AM by villainx »


rukawa

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Re: CSU - Constellation Software
« Reply #374 on: March 25, 2018, 09:16:39 PM »
I think most companies are unique.  Not genius model, but for example, the companies CSU is buying all fit this.  They fill some certain need very well.  It's a novel and unique need, and the users are clearly happy.

At a meta level I guess CSU is essentially arbitraging this.  They find small niche-y businesses that are private, buy them at a private multiple and by nature of now being public earn a public multiple on the money.

The concept is a unique value proposition.  If you own a business in a sales call a prospect says "why should we buy with you?" and you have to explain why you're unique.  But CSU isn't unique, the companies they own have this, but they themselves are just doing this private-public arbitrage.

I don't mean to belittle it or anything.  I have owned companies like this in the past, it's a valid thing.

The glassdoor reviews are sort of sad.  Not bad, just sad. Mostly because this is a company buying these little companies, squeezing them, or letting them run on auto-pilot and redirecting cash.

I get that as investors this is magical.  Maybe I have too much of a human element to me, but I've experienced being at these little companies, and I've worked for a CSU type company, and it's a shame.  There are so many clients that need solutions that just aren't getting served well, or served as well as they could.  I guess that's always the opportunity for a competitor.  I guess better worded, it's sad that they're buying all of this potential, and instead of re-investing to make it better they're just milking it.

So is the investment thesis basically that investors expect this to continue for a while?  The past has been good, and the future will be similar?  Is there key man risk here?

Glassdoor is interesting as an investment tool. Berkshire has horrendous reviews. Geico isn't much better. Telsa is worse than constellation. Its quite possible that you can treat your employees like shit for extended periods of time and still have excellent investment performance. I guess it all depends on how difficult it is to find replacements.

Fairfax is good. Google, Facebook have excellent reviews. Amazon is not great. Bloomberg isn't great either and I'm pretty sure they are making money hand over fist.

Its hard for me to say what Glassdoor indicates but I'm guessing it has low correlation to investment performance. This is one of those things that seems like is should matter but doesn't.

mwtorock

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Re: CSU - Constellation Software
« Reply #375 on: March 26, 2018, 05:54:56 AM »
i have found glassdoor reviews or in general employee reviews to be highly correlated with perks and benefits the companies offer.  ;)

Jerry Capital

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Re: CSU - Constellation Software
« Reply #376 on: April 06, 2018, 05:54:49 AM »
I noticed this press released form April 4 2011

"Constellation Software to evaluate strategic alternatives"

Admittedly not too relevant to today, but I do like knowing the history of companies that I own (and this was before I was involved in the company). Does anyone have any color on what the situation was and what they were thinking?

Thanks in advance.

http://www.csisoftware.com/2011/04/constellation-software-inc-to-evaluate-strategic-alternatives/

Liberty

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Re: CSU - Constellation Software
« Reply #377 on: April 06, 2018, 06:23:36 AM »
I noticed this press released form April 4 2011

"Constellation Software to evaluate strategic alternatives"

Admittedly not too relevant to today, but I do like knowing the history of companies that I own (and this was before I was involved in the company). Does anyone have any color on what the situation was and what they were thinking?

Thanks in advance.

http://www.csisoftware.com/2011/04/constellation-software-inc-to-evaluate-strategic-alternatives/

You scared me for a second, I skimmed and clicked through and didn't notice the year, so I thought it was from two days ago...
"Most haystacks don't even have a needle." |  I'm on Twitter  | Interesting podcast on aging research

FiveSigma

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Re: CSU - Constellation Software
« Reply #378 on: April 06, 2018, 06:38:44 AM »
Yes, there used to be two large shareholders - OMERS and Birch Hill Equity Partners. I think they were the original backers of CSU and together held 20-30%.

They decided to get an 'exit' on CSU and, through their board representation, pushed for the company sale.

Mark Leonard briefly refers to this in his 2010 President's Letter (published on April 4th, 2011).

By total stroke of luck this happened around spring 2011 when markets suddenly corrected, spreads on debt blew out, and for some time the availability of financing to PE acquirers decreased, so no deal happened.

Once it became apparent that deal won't get done, they exited through a secondary offering of their entire stakes at $87.50 per share a year later.

I'll be honest, those were pretty anxious few months.

Jerry Capital

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Re: CSU - Constellation Software
« Reply #379 on: April 06, 2018, 07:25:59 AM »
Five Sigma, thank you for that summary, I really appreciated it.