A Blockbuster Firm that Could Report Blockbuster Earnings

Feb 12, 2020

CSU, although mostly unknown to retail investors, is one of my top software stocks in the entire market. Not only is it incredibly stable during major corrections on the broader market, but the execution and business plan is excellent. Essentially, they buy smaller businesses and grow them before they get too big and expensive to acquire (so to speak).

While certainly not a cheap price, it is a top stock for EPS growth and hence, capital appreciation. Software is one of the few sectors in the market where a hefty price tag is at-least somewhat justified, unlike other companies that directly sell "things" to consumers.

Based on pure technicals, it appears the market is hinting the earnings call/report tomorrow could be a blockbuster one. If it is, CSU will reach a minimum of 1800.00 by year-end. A strong report tomorrow could give it at-least a 3-5% quick pump.

This is one of the few stocks you want to buy on all pullbacks and keep adding in numbers in your portfolio overtime.

2020 Stock Targets
- Strong report Feb 13: 1800-2000+
- Average report Feb 13: 1750
- Weak report Feb 13: 1600

- zSplit

Feb 14, 2020

Note

Earnings were mixed for CSU. Most numbers came in sufficient in my opinion but net income dropped 49% relative to 2018 Q4 even though 2019 was a solid year overall. I would have to look back to see whether 2018 Q4 was simply just a record quarter or not, however.

The company doesn't do earnings calls but my hope is that net income reduced drastically due to reinvestment and major acquisitions which is possible, although unconfirmed.

I have reduced my position as a result of too many quarters of reduced growth even though the companies they own continue to bring in more revenue. Moreover, the companies long-term track record for capital appreciation and low implied volatility in market corrections makes me remain invested at a moderate-sized position.