Annual Meeting - Time for some announcements?I wish I had your optimism BB. CGI is a solid company but does face some serious challenges.
Organic growth hasn't exactly taken off the way we would have liked. I still think there's a lot of unrealized potential in CGI but I really wish the senior management would find a way to see some of that value flow through to shareholders.
I'm confident that this is still a good long-term investment but it may take some patience. With the current market turmoil it's hard to predict when.
Here's my wish list for 2008:
1) CGI announces a shareholder dividend,
2) CGI announces a major acquisition in the US (> $1B top line),
3) CGI abolishes class B shares and goes to a one-class share system,
4) CGI announces a major (> $500M /year) contract.
... or failing all of the above:
5) A buyer comes in and offers us $20 a share.
Realistically, probably none of these things will happen and this time next year we'll still be invested in a strong cash-producing but largely flat-performing company with a lot of potential.
Having said all that, I'm hoping for the same thing you are: $12, $13, and beyond.
Annual Shareholders Meeting next week will hopefully hold some big news for us. Anyone want to start any rumours?
- Serge.