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

To: Bruno Riccio who wrote (360)	5/9/1998 4:22:00 PM
From: BM	Respond to of 1673

Hi Bruno, just to clarify - I didn't mean to imply that IFN was the next CGI, though I do believe they have a lot of potential to do very well. CGI's success would be extremely difficult to duplicate IMO. To me CGI will be solid for years to come due to the outstanding building blocks put into place by management which in turn resulted in the 5 and 10-year contracts. It takes a long time to become an overnight success in CGI's business - the barriers to entry are formidable. The outsourcing and transaction-based revenues (remember that they collect pennies from every Interac transaction processed on behalf of Canadian credit unions, plus some other financial institutions) will guarantee profits year in and year out. At this point, IFN is speculative and the company will need to continue its growth and establish more quality partnerships in the US and other parts of the world. However I believe in investing in managements more than concepts - excellent management can make an ordinary opportunity extremely profitable while ordinary management can turn golden opportunities into marginal businesses. If I must speculate, I am learning to do so based more on the company's management than the current hot sector. Management is what first convinced me to invest in CGI and so far, I like what I see in IFN's management - the leverage they're getting from their European connections is really quite impressive (e.g. increasing European partnerships, re-engineering centres and contracts at minimal marketing costs). BTW, thank you for sharing your information on IFN - things should get interesting once releases start coming out (re planned openings in Paris and Ottawa for starters) and analyst coverage starts.