15X = Time to Bail
Historically it never surpases 14 X P/E. Right now it's over 15X and even on forward year EPS it's still high. (Y2K doesn't count).
16X EPS is industry norm.
CGI trades at a discount because of the "Serge" overhang (the multiple voting rights shares).
Until one or more of the following happens, this stock will never exceed 16X P/E:
- Takeover bid
- Serge passes away
- Multiple voting shares are converted into common class "A"
- Big, or more accurately, massive new customer contract or acquisition (not likely at this stage)
Forget about $30, never mind $40. Get some money off the table at 15 x EPX while you can. It doesn't get much better than this.
I'd cash in everything except the capital gains will kill me... average cost of around 6 bucks.
- Serge.