CGI Group (A) (GIB.A.TO)

IT consulting company. Stock is ahead of itself right now but decent buy if pulls back.

Have owned for many years. Well managed company. Recurring revenue stream, long-term contracts, stable cash flows. Relatively mature business, with some acquisitions. Ready for another big acquisition. Decent organic growth vertically. Older systems that CGI is familiar with are not built to accommodate the access that customers demand. Her target price is $85-87. Likes it long term. Keep holding. Doesn’t pay a dividend.

Likes it. A lot of companies, like banks, have outdated computer systems--which CGI updated--so there's a long runway of growth for CGI. He's held this for a long while.

(Past Top Pick on May 16, 2017, Up 16%) They tend to make an acquisition every few years to expand geographic presence or in a certain vertical. Well-managed. Have increased their margins. They're ready to make a large acquisition after making some smaller ones. Their financial services has seen good organic growth. Their business is half-services, half-consulting in IT. Companies need to modernize and digitize to compete with online players. Pays no dividend. Buy for good long-term capital growth.

(A Past Top Pick on Feb.5, 2018, Up 6%) He's bearish about this summer and how FANG stocks will do, but Canadian tech stocks like this are overlooked. It's a steady eddy. It has legs. This won't take off, but you won't lose money and will make you a little.

This is at a more modest multiple than many tech companies. They are capable of organic growth. He might own it at a lower price. It is a quality company within the industry. They have good long term contracts.

(A Past Top Pick on May 16, 2017, Up 9%) She's held this for a long time. It's a Canadian IT company that does outsourcing with long-term contracts--a recurring revenue stream that will protect them if the economy weakens. They are 50% in Europe after an acquisition a few years ago. Margins are back up. They're ready to buy a bigger purchase. They are seeing good organic growth in their vertical markets (i.e. cybersecurity).

A great compounder of wealth for many years. It is Canada’s largest IT outsourcing company with most of its revenue coming from outside Canada. Their largest customer is the US military. They have the balance sheet strength to pull off a large acquisition. Yield 0%. (Analysts’ price target is $75.35 )

(A Top Pick May 24/17 Up 12.3 %). Boring is beautiful for this tech stock. As Canada’s largest IT consulting company it has long term favorable margin opportunities. He is expecting the new CEO to possibly acquire something soon.

Buy and put it away. Their business model works: make acquitions in software services, generate cash flow and pay down debt. Balance sheet is in great shape. Cloud services are giving them a lift too. Their multiple is in the low teens.

He thinks CGI has a very stable business driven by government programs. He bets there could be some road blocks getting business done in the US as a significant Canadian company. He holds a small position in their large-cap group, but would be looking to trim that down.

He does not own this company presently, but it ranks highly in their database. They do not pay a dividend despite an 18% ROE and earnings are expected to grow. They are a highly disciplined company that has been successful at growing by acquisition. Overall, they are waiting for another large acquisition. Yield 0%.

He still likes this one. IT services will continue to grow and they have been replacing lower margin contracts with better margin ones. Yield 0%. (Analysts’ price target is $75.35 )

(A Top Pick December 29/17 Up 11%). This IT technology consulting company has been very successful.

IT services company. They are well positioned. Her target for this stock is in the mid-80s. A play in the cybersecurity and need for companies to digitize and automatize their processes. Nice long-term hold. For new clients she has been waiting for a pullback in the stock.