First, I would like to say that I have uploaded a new version of my spreadsheet index to my stocks. This index will show a number of ratios and measurements for each stock I have reviewed in my blog. It is always best to compared measurements between companies in the same classification. See my spreadsheet at www.spbrunner.com/stocks/indexport.htm. This index can be used to find a stock you want to investigate further. If you find one, you should look at its full spreadsheet.
I am reviewing this company (TSX-CMG) today as I just received its annual statement for March 2009. This is also dividend paying small cap and it is one that I owned. I first bought this stock in November 2008 and I bought some more in June 2009. To date I have made some 57% annual return on my investment. I currently have an interest in investing and investigating dividend paying small cap companies. I had in the past invested in some small caps, but I did not make any money. Now I am looking into dividend paying small caps. I hope to do better. What killed my small cap stock was the bear market that started in the later part of 2000.
This company has such a great return because this is a fast growing company. Let’s not kid ourselves. This is speculation as well as investment. However, in the last 5 years this company’s dividends have grown 44% per year. This stock has only paid dividends since 2004. Not only has this stock increased its regular dividend rapidly, it has each year paid out a special dividend. Even these special dividends have been increasing.
In all of the growth elements I follow, this stock has good growth. It has had good growth in Revenues, Earnings, Dividends, Stock Price Book Value and Cash Flow over the last 5 and 10 years. There is no measurement that I have where this company is not doing well. Even the Accrual Ratio is negative and very low at -9%.
The next thing to look at is the Liquidity Ratio and the Asset/Debt Ratio. Both these ratios are quite high, with anything above 1.50 for these ratios being good. And, here they are very good at 2.30 and 2.36. The last thing I want to look at today and the only negative thing is the Graham Price. This stock is currently quite a bit above the Graham Price. This happens with growth stocks. The time to be cautious about growth stocks is that when they become mature stocks, their price trends towards the Graham price. However, this is still a small cap and has a long way to go to be a mature stock.
I will take a look tomorrow to see what other analysts are saying, but I doubt that it will be followed by many, as it is a small company.
It is a computer software technology and consulting firm engaged in the development and sale software. They have 250 Clients in 45 countries. Their reservoir simulation software assists petroleum companies to extract an increased amount of oil and gas from their reservoirs. Its web site is www.cmgl.ca. See my spreadsheet at www.spbrunner.com/stocks/cmg.htm.
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.
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