Stockchase Opinions

Michael Smedley Canadian General Investments CGI-T BUY Jan 10, 2002

5% dividend. Good long term record.
$9.400

Stock price when the opinion was issued

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BUY
Still going up. Should continue.
BUY ON WEAKNESS
Their diversification move was very good. Nibble on weakness.
BUY
In a secular uptrend and can't see any deviation. Should continue until something happens with the market.
COMMENT
A play on corporate Canada and the market. The market is behaving pretty well and is a diversified play you are probably okay here.
COMMENT

This is one of his top 5 positions. Will be reporting in a week. Stock has had a bit of a correction because they did a European acquisition and there is a little bit of integration issue. Great long-term creator of value.

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TOP PICK
Stockchase Research Editor: Michael O'Reilly

CGI holds investments in a well diversified portfolio including NVIDIA, Franco-Nevada, and CP Kansas City rail.  It trades at 2x earnings, under book value and supports a 23% ROE.  It's dividend is backed by a payout ratio under 10% of cash flow.  We recommend setting a stop-loss at $27, looking to achieve $42 -- upside potential of 26%.  Yield 3.0% 

(Analysts’ price target is $169.00)