What do you think of Converge Technologies as a high risk/high reward company?

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Asked on August 15, 2022 3:24 am
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It's a very interesting company. It is a serial acquirer, much like Constellation Software (one of our Foundational Stocks). The reason I do not own it is I just view Constellation as the better and more reliable company. It is one of the best capital allocators in the country.

I believe Converge could outperform Constellation moving forward simply due to the fact it's much smaller and is a much smaller player in its space. However, there is also a situation in where CTS underwhelms. There is the chance of outperformance, but there is also much higher risk.

You're asking if I'd view the company as a high risk/high reward moving forward? I'd say yes. But, I'd also probably say it's more so medium risk, medium reward. This is a profitable company with a lot of runway. I don't necessarily view it as a "high risk" stock like something like..... Lightspeed would be.

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Posted by Dan Kent
Answered on August 15, 2022 12:35 pm