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  5. GIB.A: I like OTEX as a long-term holding, but am in a loss situation; for tax reasons, it would be worthwhile to realize this loss, and rebuy the security in >30 days. [CGI Inc. Class A Subordinate Voting Shares]
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Q: I like OTEX as a long-term holding, but am in a loss situation; for tax reasons, it would be worthwhile to realize this loss, and rebuy the security in >30 days. In the meantime, I am thinking of investing the proceeds temporarily in CGI Group (GIBa). I note that today OTEX "popped" by ~10% because of a good earnings report. Here are my questions:
1. Is this a good time to sell OTEX (with plan to rebuy a few weeks from now) or should I wait a bit, since the stock could be in a bit of an uptrend over the next few weeks?
2. Is CGI Group a good proxy for holding the proceeds of OTEX disposition for the next several weeks (or would you suggest another proxy)?
3. In general, what do you think of these two holdings-- CGI Group and OTEX-- as long-term holds? If YOUR portfolio included both companies, would you favor one over the other (i.e., greater weighting within the portfolio), and if so which one (based on long-term prospects and current valuations)?

Ted
Asked by Ted on August 12, 2025
5i Research Answer:

With the executive transition at OTEX, in the context of revisiting a purchase in 30 days, we think a tax-loss trade can make sense, as we would not expect a whole lot of news to come out in 30 days as they undergo the transition (but of course anything is possible!). For a Candian tech co with more of a value tilt, we do think they should move in a somewhat similar fashion, outside of company speicfic news that might occur. XIT could be another option for a more diversified tech exposure as a proxy.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XIT.