RE: RE: 15X = Time to BailAs an investor in CGI for over 10 years, I know this stock too well. I can't complain as my returns are over 400%, with buying and selling over the years.
The comment from Mike Roach this quarter says it all.... "....CGI’s relatively strong stock-market valuation...".
The President of CGI considers that the market valuation for CGI shares is "strong". He's never said that before, meaning that he doens't see much upside. Don't be surprised to see a pull-back on the share repurchase program. I don't think Mikey will be buying too many shares at 22. If the price dips back to 18 bucks he might start buying again.
CGI Management has consistently believed (and stated) that the stock price was undervalued. I agreed with them, and we were right.
Now Mike is saying that this is no longer the case.
Therefore, if you're looking for high returns or quick returns, this is not the place to be. This stock is very unlikely to 30 bucks anytime soon, and unless there's a dividend payout (not likely) or a takeover offer (more unlikely) then expect some modest, year-over-year gains.
As long as Serge is still around the takeover option is pretty much off the table.
If you want to park some money in a pretty safe (and recession-proof) investment to realize 8 to 10% year over year, this is not a bad investment.
Otherwise get out between 20 and 22 bucks. It won't get all that much better than this anytime soon.
- Serge