Keith Richards Computer Modelling Group Ltd CMG-T SELL Aug 19, 2014

Energy services company. Optimize wells to get the best out of them. They have wonderful intellectual materials. They might even get swallowed up.

Great company. They have software for modelling reservoirs, including heavy oil and offshore oil. They work with some very large oil/gas companies. Fantastic margins. They pay a dividend as well as special dividends. Clean and pristine balance sheet. Trading at about 20X forward earnings. He would like it to come back about 5%-7% and would then get back into the name.

They provide software that simulates both the field and production in oil/gas fields. Took a hit along with the energy related names, but it kind of bottomed out around November when people realized it was a very resilient company with about 97% of their revenues recurring. Recently added to his position. A great long-term hold. Dividend yield of just under 3%.

(Market Call Minute.) Was involved with this in the past. If you have patience, stick with it.

(Market Call Minute.) An industry leader. It does something that nobody else does, and you have to take these opportunities when they come.

They recently had a joint venture with Baker-Hughes (BHGE-N), where Baker Hughes is co-marketing one of their products. It would make sense for Baker Hughes to take over this company. Schlumberger (SLB-N) is the only company with a competing product. (Analysts’ price target is $9.50.)

Chart looks really good technically, recently broken out of its downtrend. Reaccelerating. Testing highs of 2020, and even those of 2018. Stock looks really powerful. 

Great Canadian name. Reservoir simulation software. Good, long-term growth story. A bit cyclical because geared to the energy complex. Pick it up in thirds here, at $9 level, and around $8.

Spiked up on the close last week. Everything looks really good about this for the long term, everything says you should own some. RSI against S&P since 2022 has been really good, up and to the right. 

Buy some today with a partial position, then add a second component on a further breakout, and a third. Hope to get more at a lower price but, if not, you still own some. Screaming buy at $10.50, but doesn't think it will get back there.