InterMechanico
Well-Known Member
Thoughts on Constellation Software after the recent SAAS pullback? Probably different feelings for a holder vs looking to add
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baddogg
Crew Member
It has been part of my portfolio for about a year. I wish I could say I was happy with it over that period.
ryanonthevedder
Well-Known Member
Everything is going AI, but don't buy the AI companies.
Buy the energy needed to run it all.
I am heavily invested in uranium. DMX.V if you like swinging at fences.
InterMechanico
Well-Known Member
I’ve added a few SAAS names to my portfolio since the large correction in that sector. CSU.to is one of them. I don’t think it will be an easy ride, and previously lofty valuations will probably not be revisited in the short term. CSU.to is on a very solid financial footing with a lot of cash to deploy but a changing landscape in which to work. People have long referred to CSU.to as BRK North, and the recent management shift to taking minority positions in larger companies is a step in the direction of that narrative.
Losing Mark Leonard as CEO is tough. He remains on as permanent adviser, but for some that won’t be enough to retain confidence. I look at this differently; Mark Leonard along with his management team built a very successful and productive M&A strategy over the past three decades or so. Te company is now evolving, not into a legacy/zombie company like IBM (I think people fear this), but into a company that deploys its assets into broader landscape that will still include small firm M&A but not exclusively. If shareholders still want the level of growth seen over the last decade, the company must adapt to its increasing scale to achieve this.
With regard to the omnipresent AI threat, it is there and it is real, but I feel it’s more likely that SAAS firms will be better positioned to make productive use of it than end users. Some end users will trim their seat counts to accommodate fewer employees being replaced by AI Agents, but for me the obvious end result is that seat cost goes up commensurate with productivity. In the short term, Agentic AI provides a loop hole for end users, but SAAS still provides the high value work flow tooling and will still get paid what they need for it, regardless of what form the end user takes.
Finally, as a small business owner and sole employee; I run a mobile Heavy Equipment repair business, I use Google Gemini Pro multiple times per day. I use it for investment analysis (not the paragraphs above!), tax planning and fact finding, procurement (super handy), and finally for troubleshooting. I have spent so many hours training Gemini to help build a bespoke troubleshooting assistant to voice ideas, find obscure technical bulletins, parse internet dialogue into actionable information… It has been a game changer. Having said that, I still need every legitimate subscription source of information I needed before. All the troubleshooting trees, detailed systems operation information, all of it. When I ask Gemini how a system works rather than “Summarize this System Operation Text”, this is where the hallucination (read: mistakes) happen. Great for the former, and can really help provide context, Not so great for the latter although it improves over time.
One last thing, (Sorry for the TLDR Post!)
Gemini suggested that I should think about moving to an on premises AI system to maximize u the utilization of data I already own, which in my case it’s approximately 2 TB of service information in various formats. This started a fun and informative, but ultimately unsuccessful journey to build a Local AI model. I bought a Mac Studio (M3 Ultra, 96 GB Ram), learned the basics (from Gemini) on how to use Python Code, downloaded Llama 4B, started indexing files, etc… 18 hours later, so much learned… Need at least 512 GB Ram, on and on and on.
The long and short of it, I still use Gemini Pro ($20/month), am waiting on availability of the next iteration of the Mac Studio M5 Ultra, I still use QuickBooks online and recently negotiated a 4 year agreement with my accountant (who is and will likely always be a human)
Sorry for the length of the post!
Losing Mark Leonard as CEO is tough. He remains on as permanent adviser, but for some that won’t be enough to retain confidence. I look at this differently; Mark Leonard along with his management team built a very successful and productive M&A strategy over the past three decades or so. Te company is now evolving, not into a legacy/zombie company like IBM (I think people fear this), but into a company that deploys its assets into broader landscape that will still include small firm M&A but not exclusively. If shareholders still want the level of growth seen over the last decade, the company must adapt to its increasing scale to achieve this.
With regard to the omnipresent AI threat, it is there and it is real, but I feel it’s more likely that SAAS firms will be better positioned to make productive use of it than end users. Some end users will trim their seat counts to accommodate fewer employees being replaced by AI Agents, but for me the obvious end result is that seat cost goes up commensurate with productivity. In the short term, Agentic AI provides a loop hole for end users, but SAAS still provides the high value work flow tooling and will still get paid what they need for it, regardless of what form the end user takes.
Finally, as a small business owner and sole employee; I run a mobile Heavy Equipment repair business, I use Google Gemini Pro multiple times per day. I use it for investment analysis (not the paragraphs above!), tax planning and fact finding, procurement (super handy), and finally for troubleshooting. I have spent so many hours training Gemini to help build a bespoke troubleshooting assistant to voice ideas, find obscure technical bulletins, parse internet dialogue into actionable information… It has been a game changer. Having said that, I still need every legitimate subscription source of information I needed before. All the troubleshooting trees, detailed systems operation information, all of it. When I ask Gemini how a system works rather than “Summarize this System Operation Text”, this is where the hallucination (read: mistakes) happen. Great for the former, and can really help provide context, Not so great for the latter although it improves over time.
One last thing, (Sorry for the TLDR Post!)
Gemini suggested that I should think about moving to an on premises AI system to maximize u the utilization of data I already own, which in my case it’s approximately 2 TB of service information in various formats. This started a fun and informative, but ultimately unsuccessful journey to build a Local AI model. I bought a Mac Studio (M3 Ultra, 96 GB Ram), learned the basics (from Gemini) on how to use Python Code, downloaded Llama 4B, started indexing files, etc… 18 hours later, so much learned… Need at least 512 GB Ram, on and on and on.
The long and short of it, I still use Gemini Pro ($20/month), am waiting on availability of the next iteration of the Mac Studio M5 Ultra, I still use QuickBooks online and recently negotiated a 4 year agreement with my accountant (who is and will likely always be a human)
Sorry for the length of the post!
wildmanyeah
Crew Member
More like I just recommend products that i
Get a cut back on and do nothing to improve your rate of return!
Bryan Allen
Well-Known Member
And do you ask about medical issues from the web instead of a professional health expert ????
MRWood
Well-Known Member
Yes, I do, as the web is the only one that will answer meAnd do you ask about medical issues from the web instead of a professional health expert ????
Last edited:
ryanonthevedder
Well-Known Member
I'd suspect most people here haven't had a used for ChatGPT or Grok or Gemini but try asking the AI for advice on a stock. It cuts the due diligence down quite a bit and has been a godsend for my portfolio.
Until the next Truth post.....
InterMechanico
Well-Known Member
Did anyone see the District of North Vancouver council decision to NOT grant Chemtrade the re-zoning variance to allow than to upgrade/improve plant infrastructure, ostensibly in an effort to force them to close the plant in 2030?
The direct effect of this for the general public would be a 400% cost increase in chlorine used to treat drinking water all over western canada.
I used the opportunity to average up on this one. The BC government tanked and passed legislation to bypass local councils in situations like this one, where arguably critical infrastructure is put at risk by a city or district council.
“
Chemtrade Logistics Income Fund (TSX:CHE, OTCQX®: CGIFF)) ("Chemtrade" or the "Fund") announced today that the District of North Vancouver (the "District") Council has rejected Chemtrade's rezoning application, which would have allowed significant safety upgrades and continued liquid chlorine production at its North Vancouver chlor-alkali facility (the "Facility") beyond 2030.
The Facility is the largest producer of liquid chlorine in Canada, producing over 40 per cent of the country's supply, and has been safely operating since 1957. The liquid chlorine produced by Chemtrade is used in the treatment of drinking water. This is significant as 96 per cent of Canadian municipalities use liquid chlorine, or a chlorine derivative, to treat their municipal water supplies.
Chemtrade intends to continue to engage with District staff and Council, elected officials at both the Provincial and Federal levels, local First Nations and the community to identify opportunities to support the strategic goals and priorities of government, such as securing Canadian production of critical products, and supporting industries key to Canada's economic independence, that align with Chemtrade's efforts to move forward with planned safety upgrades and secure long-term, continued operations. It should be noted that to date, engagement efforts have resulted in support from both provincial and federal governments, along with special interest groups, stakeholders and community members. Chemtrade is also investigating possible alternative avenues for recourse, including legal action.
"The decision of the seven-member Council of the District of North Vancouver is disappointing. As the largest producer of liquid chlorine for drinking water treatment in Canada, our closure could have significant impacts which would be felt across the country. Without chlorine production from our Facility, Canada could become reliant on foreign trading partners to secure additional production of chlorine, a product critical to the health and safety of millions," said Scott Rook, President and CEO of Chemtrade. "Throughout the two and half year engagement with the District and the local community, we have received overwhelmingly positive feedback and support. We believe this decision is not in the best interest of District residents or Canadians. Our team is working with advisors and supporters to ensure we pursue all possible avenues to achieve our objective of continuing operations at the Facility and playing our part to ensure safe drinking water in Western Canada."
The direct effect of this for the general public would be a 400% cost increase in chlorine used to treat drinking water all over western canada.
I used the opportunity to average up on this one. The BC government tanked and passed legislation to bypass local councils in situations like this one, where arguably critical infrastructure is put at risk by a city or district council.
“
Chemtrade Logistics Provides Update on the Rezoning Application Related to the North Vancouver Chlor-Alkali Facility
1 day ago Business Wire • CGIFF +2Chemtrade Logistics Income Fund (TSX:CHE, OTCQX®: CGIFF)) ("Chemtrade" or the "Fund") announced today that the District of North Vancouver (the "District") Council has rejected Chemtrade's rezoning application, which would have allowed significant safety upgrades and continued liquid chlorine production at its North Vancouver chlor-alkali facility (the "Facility") beyond 2030.
The Facility is the largest producer of liquid chlorine in Canada, producing over 40 per cent of the country's supply, and has been safely operating since 1957. The liquid chlorine produced by Chemtrade is used in the treatment of drinking water. This is significant as 96 per cent of Canadian municipalities use liquid chlorine, or a chlorine derivative, to treat their municipal water supplies.
Chemtrade intends to continue to engage with District staff and Council, elected officials at both the Provincial and Federal levels, local First Nations and the community to identify opportunities to support the strategic goals and priorities of government, such as securing Canadian production of critical products, and supporting industries key to Canada's economic independence, that align with Chemtrade's efforts to move forward with planned safety upgrades and secure long-term, continued operations. It should be noted that to date, engagement efforts have resulted in support from both provincial and federal governments, along with special interest groups, stakeholders and community members. Chemtrade is also investigating possible alternative avenues for recourse, including legal action.
"The decision of the seven-member Council of the District of North Vancouver is disappointing. As the largest producer of liquid chlorine for drinking water treatment in Canada, our closure could have significant impacts which would be felt across the country. Without chlorine production from our Facility, Canada could become reliant on foreign trading partners to secure additional production of chlorine, a product critical to the health and safety of millions," said Scott Rook, President and CEO of Chemtrade. "Throughout the two and half year engagement with the District and the local community, we have received overwhelmingly positive feedback and support. We believe this decision is not in the best interest of District residents or Canadians. Our team is working with advisors and supporters to ensure we pursue all possible avenues to achieve our objective of continuing operations at the Facility and playing our part to ensure safe drinking water in Western Canada."
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