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Gold/Mining/Energy : CGI Group (GIB.A) - -- Ignore unavailable to you. Want to Upgrade?

To: Jean-Robert Grenier who wrote (177)	1/7/1998 12:27:00 AM
From: BM	Respond to of 1673

More excellent good news! - Canadian index fund will now have to buy CGI Group. We can probably expect that many growth funds will now buy them as well. Looks like Bay Street will now wake up to this company. Are you listening Brendan Kyne, John Sartz, David Bissett? Perhaps Christine Decarie (Montrustco for Scotia Canadian Growth) will even buy back after selling it a few months ago (she has admitted she may have made a mistake). JANUARY 6, 1998 CGI Group to be included in the TSE 300 Composite and TSE 200 Indexes MONTREAL, QUEBEC--CGI Group Inc. reported today that the Toronto Stock Exchange is adding the company's Class A subordinate voting shares to both the TSE 300 Composite Index and the TSE 200 Index effective January 16, 1998. CGI will be included in the Technology Software subgroup. "We are very pleased to be included in the TSE 300 Composite and TSE 200 indexes," said Serge Godin, Chairman and CEO. "CGI has become one of the fastest growing information technology services companies in North America, and being included in these indexes will help to further broaden our investor audience." CGI is the largest Canadian-owned independent information technology consulting firm, providing end-to-end IT services and business solutions to some 2,000 clients throughout North America and internationally. CGI has more than 4,000 professionals, a revenue-run rate of approximately $550 million and an order backlog of approximately $1.5 billion. Completion of the previously announced merger of Bell Sygma Telecom Solutions and Bell Sygma International into CGI, pending final approvals, will result in CGI having more than 7,000 professionals, a revenue-run rate of approximately $1 billion, and an order backlog totalling $4.5 billion.

To: Jean-Robert Grenier who wrote (177)	1/7/1998 1:13:00 AM
From: BM	Respond to of 1673

Interesting comments Jean-Robert. A few clarifications please. >> Before the BCE deal, many would have tendancy to think that CGI would not be able to realise with profit all their contracts With earnings growth in triple digits every quarter and profit margins continuously rising, why do you think that they'd think that? >> now that they have the human resources Assuming that these people were all fully occupied (a reasonable assumption), how will this help? >> they are in an excellent position to grab a great share of the 12,000,000,000$ canadian market that represent the year 2000 Agree, certainly the addition of Bell Sygma helps. They already handle a great deal of systems work for BCE subsidiaries such as Nortel. >> and that is beside the "impartition" market that the will attack more agressively I'm not familiar with the term "impartition market". Could you elaborate please? >> and the electronic transmission of data were they are becoming a leader. That is indeed a real biggie and possibly one of the reasons why Jean Monty wanted this company so badly. As Ron mentioned re CDSL, this expertise is extremely valuable to CGI. I look forward to announcements setting up electronic commerce infrastructures in the near future. >> what % do you think small investors represented out of the 39,000,000 shares of CGI ? I don't know but whatever it is, today's annoucement suggests to me that over time, fund companies will outbid individual investors (who are more short term) and the percentage of the latter will decline over time. Thanks.