$10 Target from $6.88 today + DividendsComputer Modelling Group is Calgary-based software company that provides Reservoir Simulation services to Oil & Gas co's.
Recently they acquired a US-based company that delivers Horizontal Drilling Simulations to shale producers.
Opportunity here if their recent Drilling Simulation acquisition gets traction with US shale producers.
CMG has worked for some Distinguished customers in the past, Saudi Aramco and Petroleo Brasileiro were two big ones if memory serves.
Catalyst: As E&P co's improve their balance sheets, they tend to spend more on ancillary services that drive efficiencies and optimization of their resource base. So you would expect a normal uptick in revenues at CMG plus opportunity to help US shale co's get more oil out of the ground at a lower overall cost.
Dividend History from their website:
https://www.cmgl.ca/investors/dividend-history Disclaimer: I don't own this personally, have owned it for others. Slow, steady, conservatively managed business.
Not as exciting as Gamehost (GH) but worth looking at if you believe that oil and gas reservoirs will continue to deplete, discoveries will be smaller, and drilling/service costs will rise.
Will go out on a limb and say CMG can be a $10 stock at 25x EPS of $0.40/yr 2024.
Not a GIC, so don't shoot the messenger if it only gets to $9!
Description:
Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG, recognized by oil and gas companies worldwide as a leading developer of reservoir modelling software, has sales and technical support services based in Calgary, Houston, Bogota, London, Dubai and Kuala Lumpur. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil and gas companies and technology centers in more than 60 countries. The Company's shares are listed on the Toronto Stock Exchange under the trading symbol "CMG."