skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: With respect to the Obama care fiasco, it would seem CGI (GIB.A) was not provided with reasonable time to implement and try the system. Of course, CGI could hardly come forward and contradict the US and its president on the matter. This makes for a rather uneasy context, and the reflection on the company's abilities may not be fair. And the alternative to CGI (ACCENTURE) is not exactly impeccable. The dust has not settled yet.
Read Answer Asked by Serge on January 13, 2014
Q: Having the health care contract terminated by the US Government is definitely bad optics for CGI Group, GIB.A, and I know this one contract is not a meaningful size for them, but how does this affect future govt contracts Canadian and US, which I believe are a significant portion of their annual revenue? Also unnamed sources say "that CGI has not been effective enough in fixing the problems with HealthCare.gov", so in view of their high profile of this issue over many weeks and inability to solve it, could this be a cockroach we see with many others we don't as yet? Thanks, J.
Read Answer Asked by Jeff on January 12, 2014
Q: I have owned CGI Group for a long time and I am becoming concerned about the rumours of their accounting and reliablity of their stated earnings. It has been questioned by Veritas,and Deutsche Bank analysts lately and I noticed the Caisse sold a large block last week. Would you endorse a switch from CGI to Constellation Software or Enghouse?
Read Answer Asked by Todd on December 01, 2013
Q: GIB.A, I know you like this company highly. My research shows: huge debt.,very low ROE,121% > MRQ in revenue but -71% in EPS & no dividend. It went down a bit on the Obomacare problem-I hoping a bigger collapse but his starting to rebound. What am I missing in my analysis-oh trading at a huge premium to EPS-in other words very expensive. Make me feel better about this one so I can pull the trigger.
Read Answer Asked by James on November 12, 2013
Q: I have only owned GIB for a few months and am not unhappy with it. However, you keep speaking glowingly of SYZ (and it pays a dividend, which is always nice) Would you consider it overlap to own both companies and if so, would you sell GIB to buy SYZ? I am generally a patient investor with a long time frame.

Thanks for your great service!
Read Answer Asked by Paul on November 11, 2013
Q: With respect to Betty's question below on CGI, I think this sell off is simply because of the increased scrutiny CGI will be facing due to the poor roll out of Obamacare?? Recent article today in the Globe about it. This story does not seem to be going away any time soon, and rightfully or wrongfully, CGI's name will be run through the mud, both for the site STILL crashing, and the huge cost of the program. Obamacare will obviously be debated heavily over the next 3 months... referances to the poor roll out will be made by everyone, and CGI will be the one tied to it. Personally? I think it's just a good opportunity for those not it, to get in, but I'm a shareholder so take that with a grain of salt. Just my 2 cents.
Read Answer Asked by Ray on October 17, 2013
Q: Re GIB.A: is this an example of noise from sell side analysts?

"Deutsche Bank downgraded CGI Group to Sell saying the company's aggressive accounting has driven much of the reported margin improvement. The firm says CGI's top line growth is weak and lowered its price target for shares to $24 from $32." (Sept.3)

What I don't understand is: why not just say the outlook for the company is poor or shares are overvalued rather than smear the company's accountants? Any thoughts? J.



Read Answer Asked by Jeff on September 12, 2013
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!