Topic: How To Invest

Power Growth Investor Hotline – Friday, August 20, 2021

Article Excerpt

COMPUTER MODELLING GROUP LTD., $3.99, remains a buy. The company (symbol CMG on Toronto) offers software and consulting services to help conventional oil and gas producers create 3D models of reservoirs. That lets them squeeze more out of those holes using advanced recovery techniques such as injecting steam or chemicals. Without that help, typically only 25% to 30% of oil and gas is recovered with drilling. Unconventional producers using hydraulic fracturing, or fracking, also use Computer Modelling’s software to determine the best drilling locations and depths. In the three months ended June 30, 2021, the company’s revenue fell 13.5%, to $14.4 million from $16.7 million a year earlier. Software licensing revenue makes up 80% of the total; sales from consulting and professional services comprise 20%. The coronavirus has led to declines in drilling for oil and gas in certain markets. That has in turn led some of Computer Modelling’s customers to cut spending on its software and services. In the latest quarter, Computer…

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