The Successful Investor Hotline – Friday, July 8, 2011

Article Excerpt

CGI GROUP INC., $22.99, Toronto symbol GIB.A, has gained 27.1% since we named it our “#1 Stock of the Year” for 2011. CGI is Canada’s largest provider of computer-outsourcing services. The company’s services can automate certain routine functions, such as accounting and buying supplies. That makes its clients more efficient, and lets them focus on their main businesses. The company’s strong reputation continues to help it win new contracts. As well, CGI is benefiting as governments and businesses look for ways to cut their computing costs. For example, Alberta’s Ministry of Health and Wellness recently extended an existing contract with CGI to maintain its computers and web sites. CGI did not reveal how much this new deal is worth, but it will last at least four years, and could last as long as 10 years if the ministry exercises its option to further extend the contract. Even after its big rise, CGI still trades at a reasonable 14.3 times the $1.61…