Tucows Inc T.TC

Jason Donville - BNN - DON'T BUY

[Possibleidiot01]

DON'T BUY

Tucows Inc.(TC-T)

27/05/2024

 

Sold because its ROIC returns started to get a bit wonky. In fact in last 3 years, ROIC has been negative. Satellite internet access has eaten the lunch of fibre. Hard to form a moat around its domain business. Wait for ROIC to be in excess of 20% for at least 3 years in a row.

An excellent example of deciding to move on from a position when the returns start to falter or go negative. And if there's no identifiable moat, it's a reason to exit.

computer software / processing

 

$27.000

Not owned

[ideaguy]

Jason didn’t explicitly advise against buying Tucows. Instead, he mentioned that he had previously held Tucows stock but sold it 5-7 years ago at around $70. He also highlighted that the internet business was still in its early stages and might lack a competitive moat, especially concerning satellite services.   Tucow has and will likely have negative ROIC for a while as they invest in