Efficiency focus gives these two an edge

Article Excerpt

COMPUTER MODELLING GROUP $12.53 (Toronto symbol CMG; TSINetwork Rating: Speculative) (403-531-1300; www.cmgl.ca; Shares outstanding: 79.0 million; Market cap: $976.3 million; Dividend yield: 3.2%) sells software and services that help conventional oil and gas producers create 3-D models of reservoirs. That lets them squeeze more out of those reservoirs using advanced recovery techniques, such as injecting steam or chemicals. Typically, only 25% to 30% of oil and gas is recovered during primary production. Unconventional producers using hydraulic fracturing, or fracking, of oil and gas-bearing shale can also use Computer Modelling’s software to determine optimal drilling locations and depths. In the three months ended June 30, 2015, the company’s revenue rose 9.7%, to $21.4 million from $19.6 million a year earlier. Software licensing revenue (90% of the total) rose 10.9%, while consulting and professional services revenue (10%) fell slightly. Overall earnings gained 8.9%, to $6.8 million, or $0.09 a share, from $6.2 million, or $0.08. The company makes mostly recurring revenue from…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.