Here’s Our Pick Of The Month August 2008

Article Excerpt

COMPUTER MODELLING GROUP $19.31 (Toronto symbol CMG; SI Rating: Speculative) (403- 531-1300; www.cmgl.ca; Shares outstanding: 8.5 million; Market cap: $164.1 million) is a computer software technology and consulting company specializing in the oil and gas industry. Its software provides engineers with oil and gas reservoir simulation, and three-dimensional visualization and animation. The company has over 330 clients worldwide in 40 countries. Computer Modelling’s revenues in the three months ended March 31, 2008 rose 23.9%, to $9 million from $7.3 million. Earnings per share rose 33.3%, to $0.36 from $0.27. The company holds cash of $23.5 million or $2.76 a share and has no debt. Computer Modelling spent $1.8 million, or a high 20% of revenues, on research and development in the latest quarter. The company pays a quarterly dividend of $0.20 a share, for a high 4.1% yield. It also paid a special $0.25 a share dividend in June, 2008. Last year, the company added Petroleo Brasileiro S.A., Brazil’s state-owned oil company,…