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

Just had a US government healthcare contract cancelled. This was about $100 million of their business, which may not be as important as the reputation they got when they lost it. There were some questions about accounting so she got out of the stock. If you own, it may be time to take some money out.

(A Top Pick Jan 7/13. Up 52.46%.) Still likes. This is a very attractive entry point. The acquisition they did last summer has gone very well. Have integrated the operations and improved the margins. Sees future potential for better margins as they start getting businesses that they want that have higher margins and are stable. With Europe recovering, she feels the improvement in the macro environment should help their business.

Gains through the seasonal strength in technology, but we haven’t seen the seasonal strength that is typical in the 4^th quarter up to the present. Chart shows a “head and shoulders” pattern, so it looks like it could resolve more to the downside.

It’s the Obamacare stock. The price has not reacted too badly to it. The trend line is up. So these two factors are bullish. The only reason you sell it is because it is overweight.

Likes it. The final impact from Obamacare could be a bit tough and could cause short term re-thinks about the stock.

(Top Pick Jan 8/13, Up 57.73%) Very strong company with great cash flows. His second biggest position.

It is in an uptrend but we are having a little downward move. He has been looking at it and is waiting to make sure it finds support. Will wait another day.

Has very strong seasonality, normally around October until about the end of January. This year, stock had a nice little bounce in October, but US government, with regards to healthcare has created some problems. Relative Strength has turned negative during the last couple of weeks. Currently trading below its 20 day moving average. This would be a good time to take profits.

If there is good quality and earnings are growing, never sell anything. Maybe trim it. Winning lots of contracts and have a big backlog. Trading 14X forward earnings and 18X current earnings with a PEG ratio of 1.5. He fishes in cheaper waters and his preferred play is Oracle (ORCL-N).

(A Top Pick Dec 17/12. Up 72.06%.) Margins. Have expanded a lot faster than he had expected. Thought it was going to be a 1-2 year story, but it seemed to have all happened in a few quarters. Still likes the business, but the valuation looked a little bit frothy.

Great name. Canada doesn’t have too many technology companies left and this one has done a lot of good things. There might be a little bit of headline risk with them being involved in the Obama care act in the US.

Short? Doesn’t think that is wise. They have had success making acquisitions and integrating them. Failure of Obamacare and the web site is a widely known event and built into the stock already.

If you are above a full position, then take some money off the table. Has been strong for a couple of years. We had a major swing in early April and if it goes below that then he would have trouble staying with it at all.

Did well with Obama Care. Has pulled back with Obama Care publicity. Perhaps there should have been more time for testing. They are a mature business and have been good at identifying companies or assets to expand their global business. They have a good track record.

Has been an amazing performer but it didn’t pass his screens. Their debt equity ratio is beyond what is normal. Likes the management. Cautious about this one. They are in a good position to pay down the debt and he would be interested in .5:1.