Is Sylogist Ltd. (SYZLF) Highly Cash Generative?
Greystone Capital Management, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the return for separate accounts managed by the firm ranged from +4.3 to +7.1%. The median account returned +6.0% net of fees. Q2 and YTD results were unfavorably and favorably compared to the +4.3% and -3.3% during the quarter and +15.2% and +1.7% year-to-date returns for the S&P 500 and Russell 2000. The fund’s return generally varies from the major indices as the fund’s portfolio concentrates on small companies outside the major indices. In addition, you can check the fund's top 5 holdings to find out its best picks for 2024.
Greystone Capital Management highlighted stocks like Sylogist Ltd. (OTC:SYZLF) in its Q2 2024 investor letter. Sylogist Ltd. (OTC:SYZLF) offers mission-critical software-as-a-service solutions. The one-month return of Sylogist Ltd. (OTC:SYZLF) was 10.89%, and its shares gained 40.22% of their value over the last 52 weeks. On July 26, 2024, Sylogist Ltd. (OTC:SYZLF) stock closed at $7.74 per share with a market capitalization of $183.634 million.
Greystone Capital Management stated the following regarding Sylogist Ltd. (OTC:SYZLF) in its Q2 2024 investor letter:
"It’s been years since our first purchase of Sylogist Ltd. (OTC:SYZLF) shares, and I continue to admire the intrinsic qualities of the business. Sylogist possesses many of the investment attributes I crave which include a leading position in their industry, durable and counter-cyclical characteristics, strong growth prospects, and an impressive managerial record of operating and capital allocation. I remain confident that Sylogist’s attractive economics and long runway for growth will produce improved earnings power and shareholder value over time.
The core business for Sylogist, which consists of selling non-profit, government and education related software, continues to fire on all cylinders. Customer relationships are strengthening, SaaS revenue is growing, and Bill Wood and team are focused on strengthening the company’s competitive advantage within their end markets.
Sylogist began to earn our trust years ago, taking short-term actions (viewed as negatives) to make the business more durable and strengthen customer relationships over the long term. A hefty dividend was cut, and margins were temporarily lowered to make value-accretive growth investments, which are paying off today. Even amid aggressive investment spending, Sylogist’s business remains highly cash generative..." (Click here to read the full text)
A computer engineer discussing the company's Unified Cloud Software Solutions with a colleague.
Sylogist Ltd. (OTC:SYZLF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Sylogist Ltd. (OTC:SYZLF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.