Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, May 29, 2009

Article Excerpt

COMPUTER MODELLING GROUP LTD., $14.50, symbol CMG on Toronto, reports that its earnings more than doubled in the three months ended March 31, 2009, to $6.1 million from $3 million a year earlier. Earnings per share jumped 94.4%, to $0.35 from $0.18, on more shares outstanding. Revenue rose 60.4%, to $14.4 million from $9 million. Computer Modelling sells software and consulting services to clients in the oil and gas industry. These companies are spending less on exploration and development these days, but Computer Modelling’s products and services help them get maximum output from their existing wells. This, in turn, helps them generate more cash flow. As well, Computer Modelling makes mostly recurring revenue from software licences and consulting contracts. This gives it long-term stability. The company spends a high 18% of its revenue on research and development. This will let it continue to develop software that is capable of modelling the most advanced recovery techniques. Already a leader in complex heavy-oil…

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