Pick of the Oil & Gas Service Stocks: These two help expand oil and gas output

Article Excerpt

COMPUTER MODELLING GROUP $12.32 (Toronto symbol CMG; SI Rating: Speculative) (403-531-1300; www.cmgl.ca; Shares outstanding: 18.3 million; Market cap: $211.9 million) is a software company focused on the oil and gas industry. It also provides consulting services. Computer Modelling’s software helps companies put advanced oil and gas recovery techniques to work. It has over 330 clients in 40 countries. In the three months ended December 31, 2008, Computer Modelling’s revenue rose 58.8%, to $11.7 million from $6.1 million. Earnings jumped 132.2%, to $4.9 million from $2.1 million a year earlier. Earnings per share rose 115.4%, to $0.28 from $0.13 on more shares outstanding. Cash flow per share more than doubled, to $0.31 from $0.15. Software sells despite slowdown Computer Modelling’s clients use the company’s software to generate more cash flow by maximizing the output from their existing wells. This was the main reason that Computer Modelling posted higher revenue and earnings, despite lower exploration spending in the oil and gas industry. Computer Modelling holds cash…

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