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

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To: james paterson who wrote (337)5/1/1998 12:31:00 PM
From: BM  Read Replies (1) of 1673
 
James, the increase in profit margins is quite significant when you look at their major revenue base (outsourcing). This is typically a lower margin area than software.

Having said that, I don't have comparatives for other in the industry as it varies by product/service mix - software is higher margin (not really CGI's business) and volatile while outsourcing systems management (typically, multi-year deals and to become 85% of CGI's business) are lower margin but less subject to fluctuations year over year.

Long term investors like this stock because of its high probability for consistent and increasing revenues and profits over time.
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