They’re ready for an oil and gas rebound

Article Excerpt

COMPUTER MODELLING GROUP $14.93 (Toronto symbol CMG; SI Rating: Speculative) (403-531-1300; www.cmgroup.com; Shares outstanding: 17.7 million; Market cap: $264.3 million) sells software to clients in the oil and gas industry. It also provides consulting services. Computer Modelling’s software helps companies use advanced oil-and-gas recovery techniques to raise output. It has over 360 customers in 50 countries. In the three months ended September 30, 2009, Computer Modelling’s revenue fell 5.2%, to $9.1 million from $9.6 million. Earnings fell 18.7%, to $2.4 million, or $0.14 a share. A year earlier, Computer Modelling earned $3.0 million, or $0.17 a share. Cash flow per share fell 15%, to $0.17 from $0.20. Software helps clients boost cash flow 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 why Computer Modelling’s revenue and earnings didn’t fall that much, even though its oil and gas clients spent much less on exploration. Computer Modelling holds cash…