Constellation Software Stock: Searching New M&A Opportunities (OTCMKTS:CNSWF)
Summary
VMS companies have a few key advantages: • Due to the small market, there are often just a few players, which leads to low churn rates. Even though CSI wants to stick to the strategy of buying small VMS companies meeting their hurdle rates, they also are considering doing bigger deals. What makes CSI so interesting is that they are one of the most resilient stocks Ive ever seen, since coming public in 2007 the company never had a drawdown exceeding 26%. CSI doesnt give out stock options, but they require managers to purchase shares on the open market as part of the bonus and hold them for a certain amount of years. The company has a remarkable track record of great capital allocation and a unique decentralized structure that enables them to scale M&A much further than any competitor could.