Topic: How To Invest

The Successful Investor Hotline – Friday, March 15, 2019

Article Excerpt

CGI INC., $90.18, Toronto symbol GIB.A, is a leading provider of computer outsourcing services. It helps clients automate routine functions such as accounting and buying supplies. That improves the efficiency of these businesses and lets them focus on their main operations. The company has agreed to acquire Acando AB. Based in Sweden, it provides technology consulting services to businesses in Sweden, Norway and Germany. If you include Acando’s debt, CGI will pay $614.7 million for this business. To put that cost in context, the company earned $314.7 million, or $1.12 a share, in the quarter ended December 31, 2018. The new operations will add $402 million to CGI’s annual revenue of $11.6 billion. Assuming Acando’s shareholders approve, CGI expects to complete the takeover by June 30, 2019. Using acquisitions to expand adds risk. However, CGI has a strong history of successfully absorbing new businesses and improving their profitability. OUR RECOMMENDATION: CGI is our #1 Aggressive buy for 2019. CGI recent coverage April 2019 issue Hotline for…