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

Is on an uptick. Outlook is favourable. The large acquisition in Europe is showing progress. They are ready now to do another acquisition. Buy in the summer.

Great management team. A growth by acquisition stock. Made a European acquisition last year which has been integrated, so they are making ready to make another acquisition, possibly in the US.

Has shown a great deal of growth over the last number of years, a lot of it through acquisitions. People would like to see a little more organic growth. They have been expanding in Europe, and margins there have been a bit more under pressure. Trading at about 15X earnings and 2X BV. Has an ROE of around 20%, so it isn’t really, really expensive, but not at the point where he would be jumping in. He would like to see it 15%-20% lower.

The 17.1 PE is a respectable multiple. He is very keen on it and continues to hold it. He might hope for a little pullback before buying it.

(A Top Pick Dec 3/14. Up 24.58%.) For a 2 month return, this was quite profitable. Technology has a period of seasonal strength from about the beginning of October all the way through to January. Now is the time that you want to be a bit more cautious as technology tends to underperform the market.

A fantastic company in the financial services space. Has been a really good stock. Right now it is overextended, meaning it is due for a correction. If it comes back to test its moving average of around $48, and if he didn’t own it, he would add a bit more. If you own, consider putting a Stop for half your position at $48.

They are embedded in a lot of companies, so regardless of what happens in the economy in the next year, this is going to continue to clip revenues from all the companies that it works for. The added attraction is that they have been paying down debt and becoming less levered. They will be out looking for an acquisition, which will probably happen the next year or 2 which will kick earnings forward. One of the lowest PE growth stocks in Canada right now.

This has growth and this is a consolidated market, and they are really likely to capitalize on that and grow by acquisitions. He has been buying currently. Still trading at 8.9X 2015 EV EBITDA, versus its 5 year average of 9.3.

Doing very well and executing in all areas. A major benefit to them is there international business. Only around 20% of their revenue is from Canada, so you are getting a really good clip on the currency. They continue to have a very big business relationship with Bell Canada (BCE-T).

This one has done quite well. It is a competitive player in their sector. They are a little faster on their feet. They are almost an economy stock. They are a little riskier than other financials so they should not take up a major position.

October to January is the sweet spot each year. It is in a strong upward trend, outperforming the market and above the 20 day moving average.

One of our most fantastic companies. They are efficient and growing. They are hiring more people than anyone else and their operating profit margin is higher than anyone else. They had bad press with the US healthcare contract, but that is now behind them. Hang onto them. Canadians should be proud of them.

Still thinks there is a lot of upside to this name. Bought a European operation a couple of years ago that has been integrated now. They are very astute buyers. They will buy good assets at good prices to expand their geographic footprint and their vertical market. Feels they are at a position now where they are looking around for something they can do, because their integration is all complete. She would buy this in the low $40’s.

This has been an awfully good company in terms of their growth. They have managed to increase their revenues. A lot of that has been through acquisitions. Their goodwill has built up a fair amount on their balance sheet. Earnings and cash flow have increased fairly steadily over the last number of years. The market has recognized that and is expecting it to go forward. Selling at about 2.8X BV and almost 17X trailing earnings and almost 10X cash flow. You are going to have to have fairly significant growth to justify that. ROE is high, but with those kinds of multiples you are paying a lot to get that. One of the positives is that a lot of their revenues are generated outside of Canada so they will benefit from their US operations. He wouldn’t buy it at current levels. If you have owned it for quite a while, consider taking some profits.

Likes this. Thinks it has another 10%-15% upside. They are starting to grow through Europe. He is sceptical on Europe longer-term, but he does think there is a trade there. A safe place to hide out.