New Addition: Computer Modelling Group

After I had sold my position in Sirius XM today, I have immediately bought a new position: Computer Modelling Group at 10.95 CAD.

Since I read Chris Mayer added this company to his portfolio, I have been looking at this company myself and they are just starting the acquisition machine this year.

Computer Modelling Group ($CMG) is a Canadian software and consulting company specializing in the development and licensing of reservoir simulation and seismic interpretation software for the oil and gas industry. They also offer professional services, including support, consulting, and training, to a diverse international clientele across approximately 60 countries.

They are active in a fragmented market and their CEO hired an ex Constellation Software guy as head of acquisitions. Their focus, similar as Constellation, is on ROIC plus organic growth.

Looking at their metrics I like their margins, ROIC, growth potential and the fact they dont have any debt.

They just started the runway and this could be a company to hold tight for the next ten plus years

I am working on another deep dive for a Substack colleague which I hope to finish soon. After that I want to deep dive this company further. Stay tuned and thank you Chris for bringing this one to my attention!