An Ernest Opinion2022-09-13T15:56:25-04:00

An Ernest Opinion is a blog written by Ernest Wong, Head, Research at Baskin Wealth Management. In it, he will provide thoughts on North American markets and companies with a focus on the business strategy and management quality. Baskin Wealth Management may or may not own these stocks and he will avoid the valuation aspect of the business and will not be providing any investment recommendations. We hope you will find it interesting.

What is next for Constellation Software?

By |December 16th, 2020|

Constellation Software is well known to be a serial acquirer of small vertical market software (VMS) companies, having purchased 500 or so of these in it's history and the results speak for themselves. A $1 investment in Constellation Software 10 years ago would be worth nearly $40 today, compared to only $1.30 for the TSX index. In this blog, Ernest outlines some of the challenges ahead for Constellation as it has grown to become a global conglomerate and how CEO Mark Leonard is saying he will approach the issue.

The future of Canadian Telecoms 

By |October 19th, 2020|

In early September, US cable provider Altice USA and Rogers Communications made a joint bid to acquire Cogeco Communications and its parent Cogeco Inc (I will refer to both as Cogeco). The proposed deal would have Altice acquiring Atlantic Broadband, the 9th largest cable provider in the US, and Rogers, Cogeco’s largest shareholder, acquiring the Canadian assets, mainly a cable footprint in Ontario and Quebec and giving Rogers an entry into Quebec. The deal was quickly rejected by Cogeco with President Louis Audet stating Cogeco was definitively not for sale. Despite this categorical rejection, the would-be buyers increased their bid by about 10% to $11 billion in mid-October. Not surprisingly, the increased offer was again summarily rejected by the Audet family.

Why we still love our FAANGs (+ Microsoft)

By |September 29th, 2020|

Despite falling in recent weeks (a confirmatory “told ya we were in a bubble!” moment for many investors), the sharp rise in the share prices of major technology companies over the past six months has understandably caused many people to claim we are in a repeat of the 1999 tech bubble.

The e-commerce grocery wars

By |August 31st, 2020|

Ernest paints a picture of the Canadian grocery sector and how each of the main competitors are approaching e-commerce and which one, he thinks, will be the winner.

Will COVID upend the buoyant Toronto housing market?

By |July 29th, 2020|

Most everyone thinks that housing prices in Toronto are a bubble, waiting to burst. That makes the housing market’s resilience during COVID even more surprising: the MLS Home Price Index was up 7.7% in June with sales volumes back at prior year levels.

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