Your view on OPENTEXT ( OTEX.TO) as a play on Canadian Technology Outlook in 2024?

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Asked on January 6, 2024 8:09 am
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Hey there,

We've had OTEX on our list for some time. We certainly still like the company but don't mistake this one for a high-growth, high multiples tech stock like the big ones south of the border or something like Shopify. What OTEX will provide is steady growth in the high-single to low teens range. That can all change pending acquisitions (it is a serial acquirer after all) but it is a decent tech option for reasonable growth and growing income. The dividend is well covered by cash flows and is one of the few that delivered consistent profitability and cash flows.

Personally, I do own OTEX and have averaged into my position a few times. Have no problems with this one over the long term. It is just important to temper expectations as it won't command the same multiple as some other tech stocks.

Mat

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Posted by Mathieu Litalien
Answered on January 9, 2024 7:01 pm