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

To: Jean-Robert Grenier who wrote (756)	9/26/1998 11:50:00 AM
From: Greg R	Read Replies (2) \| Respond to of 1673

Jean-Robert - On Sept 2 I told you that Sept 25 represented what I expected would be the best/safest time to buy back into CGI. I did so at the equivalent of $21.70 yesterday on the morning of the 25th. FYI - The Sept 2 post was: Message 5655949 The probability that the lowest intra-day price on the 25th would be the lowest price to be seen for the foreseeable future is very high. As usual, my chart could be out by a day or two, but the long position I took is till November and is not a day trade. So a day here or there doesn't matter for my purposes. My only disappoint was that I was hoping for a lower price to buy back in at. Oh well!

To: Jean-Robert Grenier who wrote (756)	9/27/1998 8:52:00 PM
From: BM	Read Replies (1) \| Respond to of 1673

J-R, here's some more information to support the wisdom of CGI's focus on outsourcing. Role Of IT Organizations Is Shifting (09/25/98 2:59 p.m. ET) By Bruce Caldwell, InformationWeek IT organizations are doing less development and maintenance and more integration, implementation, and sourcing management, according to the 1998 Rubin Systems/Meta Group Industry Watch Survey released Wednesday. The survey of 426 corporations and government organizations in 14 countries found development and maintenance work is down 33 percent since last year's survey, outsourcing is up 42 percent, and activity involving packaged systems is up 300 percent. Note also the tremedous growth in packaged solutions (e.g CGI partnership with SAP) As for CGI's margins, Godin identified that as a specific area targeted for improvement at the AGM - and we have see significant progress in that area in the quarterly reports since then. Indeed, outsourcing margins may tend to be lower for the processing services component - as you know in most areas of financial activity, the margins are usually highest where the risks are highest. Since outsourcing of processing services is a repetitive and low risk business (5 to 10 year contracts), lower margins may be the norm. But keep in mind that once you have the processing business, it becomes infinitely easier to cross-sell other products and services.