Topicus should borrow to buy back its stock, because it can borrow for less than its free-cash-flow yield at this price. Deployments are very weak this year, even though Topicus has the widest moat, the safest balance sheet and the lowest leverage. Management is wrong not to use debt for buybacks here, and the issue has been raised directly with the companies. x.com  x.com 

Constellation Software and Topicus are being wrongly lumped in with AI software fears, setting them up to rerate back toward a 3% free cash flow yield once things clear. They adapt, execute and take advantage of deals, with record capital deployments, and moats in vertical market software are shifting rather than disappearing; much of software can adapt with the right culture. A post the author replies to counters that new competitors have beaten Harris and Tyler in govtech. x.com  x.com  x.com