I said the other day, before being distracted by the problems with my Rogers site; I would take another look at this small cap stock to see how it is faring in this difficult market. The short answer is that it is doing quite well.
Since I last reported on this stock in July 2008, the stock has split on a 2 or 1 basis and the company has increased their annual dividends. This is the second increase for this year and also they have issued a special dividend this year. Their dividends are now up 125% from last year. This would mean that the dividend would be 122% of the EPS that is expected this year. It would seem that the company expects the EPS to be higher than what is expected.
Even though the stock is up for the year, it has, however, it has been coming down since August 2008. It certainly has done much better than the TSX and better than the TSX InfoTech Index. The Accrual Ratio is still good at “-4.5%”, The Graham price is still a distance from the stock price and that makes this a risky stock. However, they are increasing their earnings and revenue.
Will this stock be a future dividend paying growth stock added to our lists of such stocks? Only time will tell.
This company is a computer software technology and consulting firm engaged in the development and sale software. Its web site is www.cmgl.ca. See my spreadsheet on this company at www.spbrunner.com/stocks/cmg.htm. I have reloaded my spreadsheet with the first quarter report of June 2008.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on web site.
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