Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, May 23, 2014

Article Excerpt

COMPUTER MODELLING GROUP LTD., $29.94, symbol CMG on Toronto, makes software and provides services that help its clients get as much oil as possible from their existing wells. The company makes mostly recurring revenue from software licences and consulting contracts, which gives it long-term stability. In the quarter ended March 31, 2014, Computer Modelling’s revenue rose 3.6%, to $20.0 million from $19.3 million a year earlier. Software licence sales (89% of total revenue) increased slightly. However, consulting and professional services revenue (11%) rose 39.1%, due to new projects and a large consulting deal. Earnings gained 6.7%, to $7.7 million from $7.25 million. Per-share earnings jumped 18.8%, to $0.19 from $0.16, on fewer shares outstanding. That matched the consensus estimate. Computer Modelling holds cash of $72.4 million, or $1.85 a share, and has no debt. It spent $3.9 million, or a high 19.6% of its revenue, on research in the latest quarter. The company is raising its quarterly dividend by 5.3% with the June 2014…