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

It broke down on July 7^th. It is in the right space and above all its moving averages. He would rather wait for it to go up higher before buying, but hold if you own it now. A well run company.

They had the issue with the US healthcare software but this year it has held up well. If we get much below this $32 area it would be bad technically. The insider selling is a huge negative. You never know why an insider is selling, but it is much better if they are buying. The company is not buying back stock, so it suggests it is breaking down.

Chart is positive, the trend is up, outperforming the TSE composite and above its 20 day moving average. Technically it looks good. Seasonality is normally from late July right through until early January.

(Market Call Minute) Held for a number of years. They are well positioned in Europe. The stock is attractively priced.

Using his calculation of 2015 earnings, this is trading at less than 10X. He can’t believe that a stock of this quality is this inexpensive. This company tends to grow at 22%-23% a year. A “must own” at this kind of multiple.

(A Top Pick Oct 9/13. Up 1.32%.) Great company and great free cash flow generation. Ranks highly in his models.

(A Top Pick June 11/13. Up 21.18%.) Their Logica acquisition has been largely integrated in terms of restructuring and cutting costs. They are now in the transformation stage where they are getting out of lower margin businesses, and getting new higher-margin businesses. The highest book to bill in the last quarter was in Europe, indicating they are garnering new business. Trading at a very reasonable multiple of the 11-12 times earnings.

(Top Pick Jul 18/13, Up 18.06%) He got out for a while to see how they did for a couple of quarters. He bought back. Still likes it and likes the growth.

Cheap. His model price is $46.19, a 25% upside. Loves bank stocks when they go down.

Obama care and some accounting issues have been the bugaboos lately. Going back to the Obama care situation and analyze it, you find the problem really wasn’t this company. They weren’t given enough time to do the job they were supposed to do. The US government is a very small percentage of what this company does. Fantastic company.

(Top Pick Apr 12/13, Up 42.80%) He got out a little higher than where it is now as it hit his valuation target.

Basically a software firm that contracts out, largely to governments. Got badly tarnished with the Obama care in the US which was largely overblown. Feels they are very well managed overall with a good, long-term growth strategy. On a multiple basis, it still looks expensive. If it were to pull back another 10%, he would be quite interested in looking at it.

Has been looking at it carefully. Came out with very good numbers the other day. He would buy it on weakness. He wants to see how things settle in the US regarding the Obama care contract.

(Market Call Minute.) Stock had been under pressure, but is now doing better after its earnings. A large European possible growth play.

(A Top Pick March 11/14. 2.77%.) This was a little bit of a contrarian pick. They got a little bit hammered when they left the Obama contract a number of months ago, but since that date they have landed a new US government contract. It is holding, even though it is not making new highs. It is generally following its upward trend line.