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

Who do you like in Canadian Tech? As a value investor, he may like a Canadian Tech company, but may not be able to buy it because of its valuation. Two that stand out are Constellation Software (CSU-T) and CGI Group (GIB.A-T), and CGI is probably selling closer to reasonable multiples. Both are extremely well-managed. He also likes that they are both much more software dependent, not mixing any hardware which can be so fickle in today’s technology market.

(A Top Pick July 14/15. Up 11.29%.) The stock had been around $63-$64 and has now pulled back. About 50% of their revenues are from Europe, and about 13% specifically to the UK. The depreciation of the £ is a headwind, but is still too early to say. 14% of their revenue comes from France. She still likes it.

Loves the company. It closed last night up $53.85, and the target one year out is $64. Earnings growth is 11% this year over last year, and 7.4% next year and 5.6% the year after. One knock is that it has 14% exposure to UK and 42% to Europe. They have $7.4 billion in cash and credit line as a war chest. If you are a three-year holder, he would buy this.

One of the better run Canadian companies. Has a high return on equity and extremely well managed. Had a bit of a hiccup in the US because of implementation, but those things happen. They will continue delivering. A tremendous organization. Every year they conduct tens of thousands interviews with their clients. They understand the trends and are always at the forefront of those trends. They keep ahead of their competition. A great company to own for the long-term.

(A Top Pick May 12/15. Up 14.05%.) This is an IT services and outsourcing company. Rather than paying a dividend they would rather buy back stock. Every few years they do a big acquisition. A well-managed company. Still a buy.

We saw a consolidation, but came back to what is support now and was resistance before. If you see further downtrend, he would exit.

They came with earnings the other day that did not please the markets. He is not sure what went wrong and how it is corrected. He thinks it is an admirable company and he gives them the benefit of the doubt. Enter it here for the long term.

(Market Call Minute.) They are ready to make their next acquisition, which is usually a plus. They make one every 3 or 4 years. The stock has had a nice run and has held up really well in this volatile environment. She wouldn’t add to holdings.

This is a company that announces everything it does, which is great. Their 3 most recent announcements were the EPA in the US, the Scottish Borders County and the Swedish Social Insurance. A very international computer consulting company, 5^th largest globally. Just bought back a whole whack of stock. They have both organic growth and good future bookings.

Has broken through its resistance at $61.50, and there is no longer any resistance. The previous resistance should now become support. All their technical trends are curling higher. With this, you would expect buying momentum to come in if it got back to $61.50 levels. This has been overbought. It has seasonal strength April through to July. Wait until you can accumulate at around $61.50 levels. (See Top Picks.)

They generate a significant amount of cash flow. We would expect them to do another acquisition. His favourite in the industry is CTSH-Q. GIB.A-T’s organic growth rate is currently flat. There is some upside, but you want to balance picks with risk and growth profiles.

(A Top Pick Feb 5/15. Up 10.85%.) A great Steady Eddie. Sometimes has a little volatility, but recently put out a nice quarter. Recently announced they are buying back 7% of their stock from the Caisse de Depot. That will lower their denominators and ROE will be lower and will put EPS growth in. A great long-term holding, and will be for many years to come.

A really well-managed company. Growth by global acquisitions. They haven’t made a purchase recently, but they are looking. Are very successful in their consolidations.

Technically the stock looks great. The only thing that worries him is the blahness of the volume. There is not a lot going on, it is just a name that has been drifting. Not a trade, but is something if you own you would continue to do so. However, if you have a portfolio you are adding to, it is a nice name for that.

They have been really improving themselves over the last couple of years. They are sort of a facilitator for a lot of companies moving from database systems to cloud-based systems. The areas in the industry they are helping are healthcare, financials and government. Generates a lot of free cash flow. Trading at about 15X forward earnings.