RE: 3rd largest short on the TSE?I've been watching the cyclical nature of this stock for years, but I have to assert that this time is different.
Last year around this time the run-up was based on rumours that CGI might convert to an Income Trust. That was squashed, and the stock price plummeted. Then came the BCE woes and we dropped like a rock.
This year the run-up is due to better-than-expected results of $0.18 EPS in Q1. This, combined with fewer shares outstanding, has increased the share price.
This year the weaker $CAD is working in our favour, as is the increased margin and the fact that we are now fully paid out on the costs associated with the BCE cuts. With this now behind us we're a $0.70 to $0.80 EPS annualized, which puts us back at a P/E ratio of about 11.25, which is still considerably lower than most of their counterparts.
I'm a bit more rational than BnB (no offense) in my assessment of the situation, but I really do believe that there is still a lot of upside here, and we won't be down in the dumps again this summer.
Hang tight CGI followers... more good things to come.
- SURGE.