Topic: How To Invest

Power Growth Investor Hotline – Friday, June 2, 2023

Article Excerpt

COMPUTER MODELLING GROUP LTD., $7.04, 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 March 31, 2023, the company’s revenue rose 7.8%, to $20.3 million from $18.8 million a year earlier. Software licensing revenue made up 86% of the total; sales from consulting and professional services comprised 14%. Higher oil and gas prices continue to spur a drilling rebound. In the quarter, Computer Modelling earned $5.2 million, or $0.07 a share. That was up 5.5% from $5.0 million, or $0.06. On March 31, 2023, the company held…