Investment Pitches

Pitch Summary:
GoEasy (GSY) – GoEasy reported a strong quarter with a 23% ROE and reiterated their 2025 guidance. Of note, there was a short report issued on September 22nd. The stock declined from $204 to $175 as a result. We believe the report misrepresents many points, mostly around the accounting impacts as GoEasy has significantly grown their asset-backed lending business. There are also other scare tactics in the report like flagging insider selling but not highlighting that it was just 208 shares. If anyone wants more details on the short report and our detailed thoughts, please feel free to reach out. We had trimmed ~60% of our GoEasy investment around $205/share the preceding month as we added significantly on the last sell-off and it rebounded well. We may be looking to add after this pullback as well.

BSD Analysis:
goeasy continues to deliver strong fundamentals, posting a 23 percent return on equity and reaffirming its 2025 guidance despite noise from a recent short report. The business has scaled its asset-backed lending platform meaningfully, which creates accounting shifts that are easy to misinterpret but do not change the underlying economics or credit performance. The short report’s concerns appear overstated, leaning on technical accounting points and minor insider transactions — including the sale of just 208 shares — to imply broader issues that aren’t supported by fundamentals. goeasy remains a consistently high-return, well-underwritten non-prime lender with decades of disciplined credit performance and a solid track record of meeting or exceeding guidance. The company’s long growth runway, strong underwriting data, and diversified funding base continue to support healthy earnings growth. Management has demonstrated the ability to compound book value through multiple credit cycles, and recent volatility has created another attractive entry point. With sentiment shaken but fundamentals intact, the pullback presents a compelling opportunity for long-term investors.

Pitch Summary:
We think they will be successful shifting to a full-fledged power company, mainly because these turbines are already proven to be a better source for energy. As shown by the deployment in an Alberta Rec Center, the turbines power all their electricity and heat while saving 849 tons of carbon dioxide per year and reducing energy costs by $336k/year. As the energy grid becomes increasingly stressed, companies will need alternative power sources that don’t rely on the city’s electrical grid in order to get their builds approved, but will also need it to be secure and reliable. We used the recent pullback in the stock to add to our position. When looking at this company, their financials should be viewed on an annual basis due to the timing of spring break-up and shifts in activity. We expect 2025 to end up being a great year for Enterprise and 2026 to accelerate that trend. We’re looking forward to them signing deals outside of drilling, including mining, data centers, and utilities. Their recent partnership with Plum Gas Solution is the first step. We’ve been adding at these levels because this is the bottom from both a seasonality perspective but also a natural gas activity perspective. Enterprise Reported Q2 Earnings Revenue $6.5m -16% Operating Cashflow $5.1m +2% Operating Cashflow YTD $10.1M Closed the acquisition of Flex Canada on May 7th Add Long-term rental/long-term maintenance contracts Pre-Synergies acquired Flex at 4.2x EBITDA Strategic partnership with Plum Gas Solutions On pace to have a record year for revenue and earnings.

BSD Analysis:
Enterprise is positioning itself to become a full-fledged power solutions provider, leveraging its proven turbine technology to meet rising demand for reliable, off-grid energy. The Alberta recreation center deployment is a strong proof point, showing the turbines can fully supply electricity and heat while cutting carbon emissions by hundreds of tons annually and materially lowering operating costs. As electrical grids become increasingly constrained, developers, miners, and data centers will need dependable alternative power sources to secure permits and keep operations running, creating a structural tailwind for Enterprise’s offering. The company is early in this transition, and the recent partnership with Plum Gas Solutions marks an important step toward penetrating markets beyond drilling. Financial results need to be viewed on an annual basis due to seasonality, but the business is on pace for record revenue and earnings, supported by growing long-term rental and maintenance contracts. The acquisition of Flex Canada at just over four times EBITDA adds scale and deepens Enterprise’s capabilities in distributed power. With shares pulling back into what appears to be a seasonal and activity-driven trough, the risk-reward has improved meaningfully. Enterprise is set up for strong performance in 2025 and an even faster acceleration in 2026 as off-grid power adoption gains traction.

Pitch Summary:
On September 8th, EchoStar announced that they had reached a definitive agreement to combine with DISH Network in an all-stock merger. When this happened, we were concerned that the largest satellite contract in MDA’s history at $2.1B would potentially be cancelled even though it was stated by EchoStar’s CEO that the deal would be unaffected. It is now confirmed that the deal is cancelled as EchoStar/DISH delays plans for this constellation and launches a smaller version instead. Losing this contract is a blow but it’s important to keep things in perspective. A $2.1B contract that was supposed to be delivered over 2025-2028 (4 years) is a large contract, even for MDA, and it was reasonable to adjust valuation estimates for “this delay or reduction, certainly if our current P/E multiple and price target were based partly on the expectation that this contract would be delivered full.” Their Q2 results were a record for the company and they now have a ~$5B backlog and $13B pipeline with potential contract wins with Eutelsat/OneWeb, Apple/GlobalStar, Artemis, and Radarsat replacement. The market reaction after announcing the EchoStar deal and then losing it was understandable but we’re still early in the secular growth of space commercialization and MDA is reporting significant earnings growth. We expect them to announce more satellite constellation contract wins. MDA Reported Q2 Earnings Revenue $373m +54% Adj. EBITDA $76m +57% EBITDA Margin 20% Net Income $48m +106% $420m Net Cash Current backlog over $6B.

BSD Analysis:
MDA Space remains one of the highest-upside plays on the commercialization of space infrastructure, even after the unexpected cancellation of the $2.1 billion EchoStar/DISH constellation contract. While losing a contract of that size is a setback, it’s important to remember that the revenue would have been spread over four years and was only one component of a much broader and rapidly expanding opportunity set. The company just delivered record Q2 results, with revenue up fifty-four percent, EBITDA up fifty-seven percent, and net income more than doubling, highlighting the underlying strength of its core businesses. MDA now carries more than $6 billion in backlog and a $13 billion pipeline, with meaningful opportunities tied to Eutelsat/OneWeb, Apple/GlobalStar, NASA’s Artemis program, and Radarsat replacement projects. Space commercialization is still early in its growth curve, and MDA is positioned at the center of satellite manufacturing, robotics, and geointelligence demand. The balance sheet is strong, with roughly $420 million of net cash, giving the company flexibility to pursue new constellations as they emerge. Despite near-term sentiment volatility, MDA’s scale, technology portfolio, and accelerating earnings profile make it one of the better long-duration compounders in the sector.

Pitch Summary:
Constellation Software hosted a call for investors on September 22nd that strictly focused on AI. You can access the replay of the call on their website. They provided a lot of great examples of how they are utilizing AI and how knowledge about customers’ processes and workflows is proprietary. We would suggest listening to the call to better understand the argument we are making above. Constellation is home to more than 1,000 separate software solutions. They are the definition of niche software. They have a structural advantage, which isn’t just diversification, but also knowledge of processes and workflows. For many of these software solutions, they have many years, even multiple decades, of experience in that specific niche. Dealing with customers over decades provides data and critical insights into customer workflows and processes. This allows companies like Constellation (& VitalHub) to create solutions for clients’ problems instead of building AI tools that are in search of a problem (many new AI apps would fall in the latter category). The domain expertise can’t be overlooked and should be the first question when measuring AI disruption risk. The size of these customers also points to the lack of scale and resources to build and maintain software internally, most of which is mission critical and hard to rip and replace. (Just as a note, Healthcare is also Constellation’s largest vertical market). There are also internal benefits and opportunities here. VitalHub and Constellation, have their own AI initiatives which allow them to do more with less and you’re seeing it play out in their profit margins. It is early on for both these companies, but many software companies are starting to use AI themselves as a tool to be more efficient. They’re able to automate the more menial tasks and focus their internal talent on more important tasks. The recent pullback in software stocks due to this general narrative provides the opportunity to invest in the companies that will benefit while avoiding the companies that actually have disruption risk. We think this sector wide sell-off is an opportunity if you can distinguish between the winners and losers. We have been adding to VitalHub and Constellation. Constellation Reported Q2 Earnings Revenue $2.84B +15% 5% organic growth Operating Cash flow $433m +63% Cash Earnings $619m +34% Cash Margin 22% Deployed $469m on acquisitions in the quarter Deployed $320m in Q3 so far Higher margins with lower % staff expenses.

BSD Analysis:
Constellation Software remains one of the most structurally advantaged software companies globally, with more than a thousand deeply embedded niche solutions that serve mission-critical workflows across dozens of verticals. Its greatest moat is not diversification alone but the decades of accumulated domain knowledge in each niche, giving Constellation proprietary insight into customer processes that is extremely difficult for generic AI tools or horizontal platforms to replicate. This expertise allows the company to build AI features that solve real, highly specific customer problems rather than pushing undifferentiated tools in search of use cases. Because most of its customers are small or mid-sized organizations with limited IT resources, their software is sticky, hard to rip out, and increasingly essential, reducing the risk of AI-led displacement. Constellation’s own AI initiatives are already improving internal efficiency by automating routine tasks and freeing talent to focus on higher-value development, which is visible in expanding profit margins. The recent broad sell-off in software created a disconnect between valuation and fundamentals, especially for companies like Constellation that stand to benefit from AI rather than be disrupted by it. With double-digit revenue growth, strong cash generation, and nearly half a billion dollars deployed on acquisitions last quarter, Constellation remains one of the clearest long-term compounders in global software.

Pitch Summary:
VitalHub provides mission critical software mainly to the healthcare industry in Canada and the UK. Their clients are the UK and Canadian governments. They handle extremely sensitive patient data, have the required certifications and have a pristine cyber security record. We don’t think their government clients have the risk appetite or budget constraints to shift their business to cheap start-up alternatives or develop software internally. From our viewpoint, healthcare is usually the last to adopt “new” technology, which is why VHI is winning and implementing software today. They are literally just now getting doctors’ offices to replace fax machines with software solutions. Speaking with healthcare professionals, cyber and service are the highest priorities when selecting a product. Not price. VitalHub (VHI) – As covered earlier, VitalHub’s stock has been weak due to the AI narrative. They reported a record Q2 and have significant capacity to be opportunistic with +$120M in cash and no debt on the balance sheet. VitalHub Reported Q2 Earnings Revenue $23.9m +47% ARR $79.6m +55% 14% organic growth Adj. EBITDA $6.3m +50% EBITDA Margin 26% Cash Earnings 5.1m +132% Cash Margin 21% Novari acquisition closed after the quarter end Including Novari the ARR increases to $91.6m Sitting on +$120m of Cash and no debt currently.

BSD Analysis:
VitalHub is a mission-critical healthcare software provider serving government clients in Canada and the UK, two markets where reliability, cybersecurity, and regulatory compliance matter far more than flashy new features or marginal pricing differences. The company manages highly sensitive patient data and holds the certifications required to operate in tightly regulated health systems, creating extremely high switching costs and making it unlikely that governments would migrate to unproven start-ups or attempt costly in-house development. Healthcare is notoriously slow to adopt new technology — many providers are only now retiring fax-based workflows — which positions VitalHub as the steady, trusted operator guiding this long overdue digitization. The company continues to post strong numbers, with revenue and ARR both growing more than forty percent, and cash earnings up over one hundred percent. With more than $120 million in cash and no debt, VitalHub has substantial dry powder to pursue opportunistic acquisitions like Novari, which lifted ARR to over $91 million post-closing. The recent stock weakness tied to generic AI fears misses the point that VitalHub’s products are deeply embedded, workflow-specific, and mission-critical — exactly the type of software least vulnerable to commoditized AI tools. As the company continues consolidating its vertical and deploying capital at attractive returns, VitalHub remains a high-quality compounder trading at an undemanding valuation.