2011 looks strong for these niche firms

Article Excerpt

COMPUTER MODELLING GROUP $25.91 (Toronto symbol CMG; SI Rating: Speculative) (403-531-1300; www.cmgroup.com; Shares outstanding: 18.1 million; Market cap: $467.9 million; Dividend yield: 3.1%) sells software to clients in the oil and gas industry. It also provides consulting services. Computer Modelling’s software helps companies use advanced oil-and-gas recovery techniques to raise output from their existing wells. It has over 360 customers in 50 countries. In the three months ended September 30, 2010, Computer Modelling’s revenue rose 46.8%, to $13.2 million from $9.1 million a year earlier. The company sold more of its software and consulting services to both new and existing customers. Earnings jumped 89.1%, to $4.6 million from $2.4 million. Earnings per share rose 78.6%, to $0.25 from $0.14, on more shares outstanding. Lots of cash, high dividend The company holds cash of $32.6 million, or $1.89 a share, and has no debt. It spent $2.2 million, or a high 18.9% of its revenue, on research in the latest quarter. The company raised…