An extremely well-managed company, and they’ve gone from just being a Canadian regional company in the late 90s, to being one of the global giants in outsourcing of IT. Have made a lot of acquisitions and integrated them well. Expects they will continue doing so. One of the few Canadian technology companies that is big and global, and a core holding in most Canadian institutional portfolios. Thinks it will gradual move upward for quite a while.

(A Top Pick Oct 20/17. Up 2%.) He still likes this. This is IT consulting, and in today's technology heavy world, medium size or smaller businesses find it more challenging every day, to manage the IT side of things. The technology is so sophisticated and the costs are so high, they tend to farm it out, and this company is in the sweet spot in a very, very desirable space.

Period of seasonal strength is from about mid-October until about the end of January. Technically it has a long-term upward trend. It’s just reached an all-time high.

About half their revenue comes from outsourcing on long-term contracts, which are reoccurring, and the other half is systems integration consulting contracts. They are well positioned on the technology trends, with everybody having to develop a digital platform and automate processes for artificial intelligence. Companies are having to look at their legacy technology systems, and upgrade to make them more digital, online. When you do that, you are inviting customers and the world onto your website, which means cyber Security is another issue. This company has solutions to address all these metrics. Very global with about 50% from Europe, 30% in the US and the balance in Canada and Asia. (Analysts’ price target is $74.)

An interesting company that offers solutions to people with problems in the computer area. This is a growth stock. The PE is reasonable. If you want a growth stock, it’s not a bad stock to own. It’s not just in Canada and the US, but also in Europe.

There is a new CEO in the last year.  It is likely he will put his stamp on the company in some form.  It is Canada’s largest IT services company.  They could make a transformational acquisition.  They have a history of doing this.  It is a good play on the US economy where they have their largest customer.  (Analysts’ target: $74.00).

He likes this at these levels. He models an 8% EPS growth. Thinks you will get share buybacks and margin expansion. There is capital employment opportunity and tuck-in acquisitions. It is a pretty fragmented sector. The only bad thing is its price. It is trading at around 17X versus 15X its 5-year average. There are also the rising Cdn$ headwinds.

TSX Infotech sector? He would look at this and Open Text (OTEX-T). He doesn’t look at this one too much, because it doesn’t pay a dividend, but it has been a very good performer.