CGI Group (GIB.A) - Message Board

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Gold/Mining/Energy : CGI Group (GIB.A) -

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To: Jean-Robert Grenier who wrote (1464)	12/5/1999 11:42:00 AM
From: The Coz	Read Replies (1) of 1673

JR. It make sense. But I see it splitting more around the $60 mark. Much like NorTel, it's a bold and new company with revenues much greater than before. With an upcoming US acquisition on top of the rumored NT outsourcing contract, CGI's revenues should amount to $2.5B by next Sept/2000(excluding any other contracts). Totally different company! After acquiring in the US, more US investors will be more interested in buying CGI for it's future gains (growth). Volume on NYSE should climb. I still believe that because of this metamorphosis, CGI would want to keep a certain stock value level which is appropriate for a blue chip in the IT industry. It will attract a different type of investors now that it's past the $40 mark. The progression from $40 to $50 will be rapid. The fact that within the next 2 months we should see important PR will ignite CGI stock and push it beyond the $50 level. Around $55-57, CGI would then announce a 2:1 split. Investors are then going to rush and buy the stock, push the price beyond $60 and voil…! Split "du jour". I think we have to realize that if CGI did not split way back then when it was close to $40 (Jan 98), now that we're beyond that point, it ain't gona happen! Not before $60 I say. At $60cdn or $40US, a 2:1 split means $30cdn or $20US. It's simple. CGI do not want to have a US stock value below $20. It's all about perception/image of the stock/company. It's very symbolic of the company stature and strength. Viva la difference!!! Looking forward to beautiful ending of 1999 and dazzling new year 2000!

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