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

Their recent acquisition is way ahead of schedule. They brought their timeline forward and upped the amount to which they estimate it will be accretive to earnings. This is an example of a management team that really knows how to get acquisitions done. They are focused on driving up efficiencies in their businesses.

Likes the European-based acquisition they did last year. Synergy targets to improve margins are coming in ahead of schedule so management has recently increased these targets.

Liked for a while. Integrating UK acquisitions much better than expected. They will get a higher multiple.

(Top Pick May 8/12, Up 44.90%)

(A Top Pick March 19/13. Up 2.46%.) Still likes.

Can see this getting up to $30 if things continue to go well. Fundamentals look solid with plenty of room to improve. Trading at 12X forward earnings.

Stocks like this follow the seasonal pattern of the technology sector. This is normally around the middle of October until about the end of January. Worked out well this last period. Stock has been drifting over the last 2-3 weeks and has broken a key support level. If you own, take some profits.

(A Top Pick May 7/12. Up 21.33%.) One of the great growth stocks in Canada. Trading at around 8X earnings and grows about 20% a year. Low risk, decent return company. Sharp management. Managing their balance sheet very well. Aggressive share buyback should continue in 2013.

Has a history of doing acquisitions very well. Fairly large and integrated them well and kept the sales pipeline going and achieved cost synergies. Thought their Logica acquisition was very cheap and should lead to substantial synergies.

This is just off the acquisition of the British Logica IT company where the shares have pulled back a little bit. Last quarter was very strong. Reported increased margins in Europe. Now they can start realizing some of the accretion from the Logica deal which they say is going to be 25%-30% on earnings in the next year.

(A Top Pick Feb 8/12. Up 39.08%.) The Logica integration is going quite well. Positive margins in the 3%-4% range and management is targeting to get it up to 10%. $31 target. Wait for a pullback before buying.

Well positioned by Canadian standards. One of the few companies that is moving outside of Canada. Growth opportunity is coming from the healthcare sector in the US, where they’ve bid on a number of exchanges that are being set up, especially for the states that are not going towards the Obama care solution. Management is very cost conscious and somewhat acquisition driven.

There is a lot more upside to go, but he is not a fan of the acquisition they made, nor is he a fan of the space. Not particularly interesting. Could be a short term increase.

(A Top Pick Dec 17/12. Up 2.79%.) Still likes. Good entry point. The acquisition they made in Europe is going to be groundbreaking for them for years to come.

Outsourcer of information technology. Make deals with government institutions or companies and purchase part of their IT and in return provide a service over the next 5-10 years. Interesting business model, very high free cash flow, which tells you it is very low risk. Hasn’t been a lot of growth but what they do is, instead of paying out dividends, they make acquisitions. Most recent purchase was a company in the UK, which created some concern but he doesn’t think they have messed up. Good price and one of the best management teams in Canada.