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

Attractively priced, trading at about 12.5X forward earnings, a discount to its peer group. The European acquisition they did about 1.5 years ago has worked out well. Slowly changing the mix of their business so the margins would appreciate over time. Very attractive entry point.

Great business. Like a mini IBM annuity style business. They lock themselves into the contract and help businesses out. Sign multiyear deals. Reasonable valuation. Doesn’t meet his criteria for being cheap enough. If you Buy a basket of technology companies in the US, you are going to do much better.

(A Top Pick April 3/13. Up 31.89%.) Has had a lot of negative press because of the Obama situation, but they produce a great stream of cash flow with a very steady 20% ROE. Although the chart is lumpy, when you own it in the context of a portfolio, that lumpiness kind of folds itself out. Still one of the cheapest stocks. Trading at 9.5X 2014 earnings and is projected to grow by 23% this year.

One for the patient trader, not a quick trade. Business is doing well, expanding into Europe. Only negative is the bad press they received from the ObamaCare, which from the revenue point of view is meaningless.

(Past Top Pick Jan 28,2014 down 0.13%) Is going to be a volatile play. ObamaCare program was less then 1% of their revenues. For people with patience the uptrend is firmly in place. Will hold for a couple of years, and thinks it is still an opportunity.

It is a good entry point. They turned around the margin and got rid of the lower margin business. Management is going to continue to look for acquisitions and they will continue to buy back their own stock.

Runs from October into January. Hold until $41, the resistance level.

Has taken a bit of a hit because of the Obama care fiasco but this is a very small part of their business. The bigger issue is that they have been growing by acquisition and there is some question as to the real accretion coming on through that, as well as a little bit of differential between cash generated and earnings reported. A quality business and have been doing this for a long time.

(Top Pick Mar 19/13, Up 28.92%) Logica deal is the main driver right now. They paid a low multiple in his opinion. GIB stopped going down and that is a good thing. They are bringing up European countries to CGI’s margins. 60% of revenues are going to be coming from Europe. There was the Obamacare fiasco, which was how the government managed the project, but fall out could still be a risk. There was an acquisition that caused some controversy on accounting for the cash flow, but he continues to own it.

Got out of this last year but is starting to look at it again. He is comfortable with their growth story. Have great backlog of business. Valuation is down to a very reasonable range.

Has gone through a lot of difficulty with the government healthcare debacle. Most analysts have a Buy on this name right now. It definitely has a stranglehold on some big segments of Canadian industry. Very big behind the scenes and the banking industry as well.

A great entry point right now. Their European acquisition last year was very timely. Just reported. Cash flow was a bit light because they had built up some working capital, some receivables went up and this should resolve itself next quarter.

Had a crazy amount of earnings and had a small contract with the whole Obama care deal. That didn’t work out so well and the government did not renew their contract. However, that contract represented less than 1% of their total revenue. The press made a big deal of it. Meanwhile the company is expanding into Europe through a company they just acquired in Switzerland. Earnings growth is going to be big. Trend is up and is still above its 200 day moving average. He is doing a partial Buy for his holdings and recommends you do the same.

(Market Call Minute.) Fighting the near-term bad news of what happened in the US healthcare portal. Good business. Have done a good job executing over time. You are going to have to let the smoke clear in the short run.

A very long term uptrend that it is still in. It had a nice correction late last year. It is coming back to the $32 support level. If it holds there it has a chance of beginning a new up leg.