stock pickers
COMPUTER MODELLING GROUP (Toronto symbol CMG; www.cmgroup.com) sells consulting services and software that help oil and gas producers use advanced recovery techniques to get more out of their existing wells. The company has customers in over 50 countries and offices in Calgary, Houston, London, Caracas and Dubai. In the three months ended March 31, 2013, Computer Modelling reported revenue of $19.3 million. That’s up 12.0% from $17.2 million a year earlier....
PASON SYSTEMS INC., $19.23, symbol PSI on Toronto, has lost a patent dispute with its main competitor involving its AutoDriller product, which helps companies run their drilling operations more accurately and efficiently. The judgment awards the competitor $52.9 million of damages. Pason rents equipment for monitoring and managing land-based oil rigs. It also provides communication systems that companies use to remotely collect data from their drilling operations. The company serves oil and natural gas firms and drilling contractors throughout Canada, the U.S., Mexico and Argentina. In the three months ended March 31, 2013, Pason’s revenue fell 5.1%, to $109.3 million from $115.1 million a year earlier. Strong international sales were offset by slower drilling activity in the U.S. and Canada. Cash flow per share fell 7.9%, to $0.58 from $0.63. Pason holds cash of $168.9 million, or $2.06 a share, and has no debt....
ACI WORLDWIDE (Nasdaq symbol ACIW; www.tsainc.com) makes software for processing transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments. Its products also help cut fraud. In mid-February 2012, ACI completed its $540 million purchase of S1 Corp. This acquisition has been a good fit: S1 sells transaction software for banks, credit unions, retailers and other payment processors. It has over 3,000 clients worldwide....
AEROPOSTALE INC., $13.87, symbol ARO on New York, is a mall-based retailer of casual clothing and accessories. The company has 976 Aeropostale stores in the U.S., Canada and Puerto Rico. It mainly sells its clothing to 14- to 17-year-olds. Aeropostale’s 132 P.S. from Aeropostale stores in the U.S. are aimed at seven- to 12-year-old elementary-school children. In November 2012, Aeropostale bought online women’s footwear and clothing retailer GoJane.com. The company now plans to launch the Aeropostale brand in Mexico through a licensing agreement with Distribuidora Liverpool, S.A. de C.V....
BLACKBERRY INC., $11.08, Toronto symbol BB, fell 26% on Friday after the company reported lower-than-expected earnings. In its 2014 first quarter, which ended June 1, 2013, BlackBerry shipped 6.8 million smartphones, down 12.8% from 7.8 million a year ago. The latest quarter’s shipments included 2.7 million of its new, higher-priced BlackBerry 10 models, which fell short of the consensus estimate of 3.3 million. BlackBerry also lost $84 million, or $0.16 a share (all amounts except share price in U.S. dollars). Still, that’s a big improvement over the $510 million, or $0.97 a share, it lost a year earlier....
AIMIA INC., $15.74, symbol AIM on Toronto, rose over 13% this week after TD Bank agreed to become the primary credit card issuer for Aeroplan, Aimia’s main loyalty program. TD is a recommendation of The Successful Investor, our newsletter that focuses on conservative Canadian investing. Aeroplan is Canada’s largest loyalty program, with over 4.6 million members who collect Aeroplan miles from participating companies. Members can exchange their miles for flights, car rentals, hotel rooms and merchandise. Under this new 10-year deal, which would begin January 1, 2014, TD will launch new credit cards under the Aeroplan banner, including cards for frequent flyers and small businesses....
LEON’S FURNITURE LTD. (Toronto symbol LNF; www.leons.ca) built its 75-store furniture chain on its four main strengths: a huge selection of furniture, appliances and electronics; a lowest-price guarantee; strong after-sales service; and aggressive TV, radio and print advertising. In the three months ended March 31, 2013, Leon’s sales rose 3.2%, to $162.5 million from $157.4 million a year earlier. However, earnings fell 36.9%, to $5.4 million, or $0.08 a share....
ALARMFORCE INDUSTRIES, $10.41, symbol AF on Toronto, reports that its sales rose 9.1% in the three months ended April 30, 2013, to $11.9 million from $10.9 million a year earlier. The company earned $1.3 million, or $0.11 a share, compared to a loss of $238,021, or $0.02 a share. AlarmForce’s revenue rose along with its subscriber base: the company ended the quarter with 31,200 U.S. customers, up 22.8% from 25,400 a year ago. In Canada, it now has 106,500 subscribers, up 1.8%. The company’s earnings rose because it spent a lot less on marketing than in the year-earlier quarter, when it increased its advertising spending as it launched its VideoRelay system. This service lets subscribers watch their homes through computers and smartphones....
DOREL INDUSTRIES, $35.10, symbol DII.B on Toronto, fell over 10% this week after it announced that its earnings will fall below expectations in the current quarter. Dorel makes a wide range of products, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and recreational products, mainly bicycles. Continued poor weather across the U.S., Canada and Europe has led to lower-than-expected sales volumes, particularly for bicycles (which account for roughly 34% of Dorel’s sales). The slowdown has also prompted the company’s competitors in the bicycle industry to cut their prices....
DOMINO’S PIZZA (New York symbol DPZ; www.dominos.com) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 10,040 outlets in the U.S. and over 70 other countries. Franchisees run most of these stores. Excluding one-time items, the company’s earnings per share rose 25.5% in the quarter ended March 24, 2013, to $0.59 from $0.47 a year earlier. Sales rose 8.6%, to $417.6 million from $384.6 million. Same-store sales rose 6.5% internationally and 6.2% in the U.S....
