Resource service firms to power your returns

Article Excerpt

Demand for Major Drilling’s specialized services now looks to be moving up. Meanwhile, Computer Modelling is benefiting from expanded oil and gas drilling in response to overall higher energy prices. We think there are gains ahead for both stocks. COMPUTER MODELLING GROUP, $6.86, is a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares outstanding: 82.5 million; Market cap: $566.2 million; Dividend yield: 2.9%) offers software and consulting services to help conventional oil and gas producers create 3D models of reservoirs. That lets them squeeze more out of those holes using advanced recovery techniques such as injecting steam and chemicals. In the three months ended March 31, 2025, the company’s revenue rose 4.3%, to $33.7 million from $32.3 million a year earlier. In the quarter, Computer Modelling earned $5.1 million, or $0.06 a share. That was down 29.4% from $7.2 million, or $0.09. Costs rose, including for marketing and research and development. On March 31, 2025, the company held cash of $43.8 million, or…