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

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To: toccodolce who wrote (90)	9/11/1997 7:05:00 AM
From: BM	of 1673

Hi Thomas, I'd guess that a PE somewhere between 20 and 30 might be average. A couple of comments: - as you probably know, the PE is a reflection of the past 12 months' earnings vs today's price. CGI's growth rate in revenue and earnings is now in triple digits, with earnings from the most recent acquisitions yet to be factored - the industry itself in not homogeneous with variances in average PE different between hardware, software, services, outsourcing and consulting companies. And now we have Year 2000 players which seemingly command the highest PE of all. - CGI today is a significantly different company from even just 12 months ago. It's capacity to earn revenue and generate profits through its acquisitions has multiplied considerably. - while CGI will clearly profit handsomely from Y2000 work, I would not characterize it as a Y2000 play - the outsourcing aspect of its business will be the cornerstone of continued growth for this company. Hope this helps.

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