July 31, 2017

On Monday, the S&P 500 was down 0.1% while Toronto was up 0.1%.

Costco was up a hefty 3.7% gaining back some recent losses. Looking on Yahoo Finance (which has become increasingly useless) I don’t see any news to explain this. Not that the market ever owes anyone an explanation for price changes.

CRH Medical was down 2.6%. I  am quite eager to see its results on Wednesday. Most of the share drop related to decreases in what it will be reimbursed for its services by insurance companies starting in 2018. So, possibly even a good Q2 will not be rewarded. What may be more important is the companies outlook discussion. It is possible too that they will write-off some of their purchased goodwill. Despite uncertainties I am hopeful that the Q2 result will lead to an increase in the share price.

I am currently working on an update for Constellation Software. It’s clearly a great company. The question is whether all of its greatness is already fully reflected in the share price. It’s disclosure is interesting. The chairman’s letter is unbelievably candid and useful. The annual report MD&A however I found not to be very useful at all. I am going to look at the Annual Information Form which appears to have more useful information. In many years of investing I have never quite figured out why companies need an Annual Information Filing in addition to the annual report. If the information in the AIF is useful why not just include it in the annual report? Sometimes the AIF provides nothing much in the way of additional useful information. Other times the best information is in the AIF. At least that has been my experience. But I don’t always look at the AIF if the annual report seems comprehensive.