RE: wow what a bad start of the week?
There can't be any foundation for this recent slide unless there is a major leak regarding the upcoming Y/E results. From my experience, CGI is much better than most at preventing information from leaking prematurely - especially around Q and Y/E numbers.
The softening USD cannot be held responsible for this slide. The impact should only be about $0.02 to $0.03 at the very most on quarterly EPS. That would leave us with about $0.16 EPS Q4.
Assuming the worst case scenario of $0.76 for 2007 we are trading at a P/E of 13, which is absolutely ridiculous.
Whoever heard of an IT services company trading at P/E 13? It should be closer to 20!
In conjunction strong cashflow being generated by CGI it makes one wonder what the heck is going on out there.
Does somebody know something we dont?
Message to Mikey: "Buy back! Get in there and pick up some cheap shares before the price rebounds next week."
- Serge.