Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 26, 2011

Article Excerpt

COMPUTER MODELLING GROUP LTD., $12.43, symbol CMG on Toronto, makes software and supplies services that help its clients get as much oil as possible from their existing wells. The company makes mostly recurring revenue from software licences and consulting contracts. That gives it long-term stability. In the three months ended June 30, 2011, Computer Modelling’s revenue rose 32.2%, to $15.9 million from $12.1 million a year earlier. Licence revenue rose 42%; that more than offset a 19% drop in consulting and professional services revenue, due to the strong Canadian dollar. Earnings rose 57.6%, to $6.7 million, or $0.18 a share, from $4.2 million, or $0.12 a share. Already a leader in complex heavy-oil and tar-sands simulations, Computer Modelling should profit further as oil and natural-gas producers continue to develop other unconventional sources, such as shale gas, coalbed methane and stranded gas. Computer Modelling holds cash of $38.3 million, and has no debt. The company raised its quarterly dividend by 5%,…