Pick of the Junior Technology Stocks – Two Niche Techs With a Global Reach

Article Excerpt

COMPUTER MODELLING GROUP $18.25 (Toronto symbol CMG; SI Rating: Speculative) (403- 531-1300; www.cmgl.ca; Shares outstanding: 8.4 million; Market cap: $153.3 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 250 clients worldwide in 45 countries. Computer Modelling’s revenues in the three months ended December 31, 2007 rose 27.1%, to $7.3 million from $5.8 million. Earnings per share rose 13.6%, to $0.25 from $0.22. The company reported the improved results despite higher expenses related to increased staff put in place earlier to prepare for future growth. Costs to develop a new version of its reservoir stimulation software also hurt profits. Computer Modelling spent $1.7 million, or a high 23% of revenues on research and development in the latest quarter. Earlier this year the company raised its quarterly dividend by 33.3%, to $0.20 a share from $0.10 a share…