Computer Modelling saves cash

Article Excerpt

COMPUTER MODELLING GROUP $5.13 is still a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares o/s: 80.2 million; Market cap: $419.7 million; Dividend yield: 3.9%) cut its quarterly dividend by 50%, to $0.05 a share from $0.10, with the June 2020 payment. As a result, the stock now yields 3.9%. The reduction will let the company conserve cash in the current volatile market due to COVID-19. The coronavirus has led to declines in demand for oil and gas, which has in turn led many of Computer Modelling’s customers to cut production and spending on the company’s software and services. At the same time, though, the company plans to continue to invest in its marketing efforts and research (which is a very high 25% of sales). That puts it in a strong position to rebound when energy markets recover. recover…

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