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

Consolidates and pops. Great long term chart and he expects it to continue. Probably one of the most undervalued growth stocks. You will see some tax loss selling but in the resource sector.

Has been a pretty good business, but not a dividend paying type of company so he doesn’t own it. Prefers IBM. If GIB returned some money to shareholders it would be a sign to look more carefully at it.

Has been a past pick for his company. Recent acquisition is turning out to be better than they expected. If they got Canadian growth, the stock would increase.

$39.90 model price, 6% upside. He has been riding this one. Thinks it goes to $51.15, but may get there slowly

Provide IT consulting. 16% trailing ROE that is expected to grow to 21%. 7% free cash flow yield. PE multiple of 13.5%. There are still good opportunities for them to continue to grow.

(Market Call Minute.) Has done well. Not many choices in Canada.

Made a European acquisition last year at a pretty good price. Have met their original operating targets at the 9% level. Feels they can still improve European margins beyond the 9% target they originally set. Had a very good track record in buying assets to either increase geographic exposure or increasing their vertical market. Has a target price of closer to $40.

Very, very strong company. Doesn’t pay a dividend. Has a massive acquisition that it is absorbing in Europe and Europe is going to be better in the future than it was in the past.

He is not selling so continue to hold it or buy it. They have great leverage into the market. Thinks they will continue to deliver numbers ahead of estimates. Would exit in the mid-$40s.

(Market Call Minute.) Wouldn’t be adding at this time but would look at it a couple of dollars down. She has a target of $40. Likes the company.

(A Top Pick June 4/12. Up 52.07%.) Have historically grown by a significant amount of acquisitions. Doesn’t own as he thinks there are multiple opportunities in smaller companies, to really go up but it’s not to downplay these Top Picks.

Earnings coming out Wednesday, wait and see.

Downgraded by Goldman Sachs. Doesn’t know this business particularly well. Had a big run over the years. They are always reliant on contracts. Good stock and well-run company but feels the upside is limited.

Acquisition made sense. It was a low margin business in Europe which they can now bring to Canada. Likes the valuation. Within Technology it is a safe play. The big risk is competition from large players like IBM, who recently increased earnings forecasts, suggesting this one will.

Quarterly earnings came out in the stock had a huge jump followed by a consolidation. Through the years, the stock has done that a few times and each time it has actually been quite positive. Has a good track record of going through formation and consolidation. If this breaks down through its trend line, that is not good but if it bounces upwards, that is a positive sign.