CMG - Computer Modelling Group - Darvas Stock at New High

One stock from my all-time high stock screen last weekend that deserves a post of its own is Computer Modelling Group (TSX: CMG). CMG has made a terrific run since October. Nicolas Darvas would have liked this stock and its ability to "stack boxes" in an orderly way.

In spite of the fact that CMG has put up an amazing quarter and has a beautiful lifetime chart it gets very little attention in the trading community. You won't find it on the stocktwits50 or in the pages of Investors Business Daily. That is one of the advantages of trading in the Canadian markets -- more 'hidden' gems.

CMG is not some speculative little company. Quite the opposite -- it is an international company and a world leader in its field. Its software enables oil companies to get the most value from their reserves. CMG is consistently profitable and has paid a special dividend every year since 2005. That's right, it's special dividend is routine. And, they paid it during the worst financial crisis and in decades and when oil prices collapsed.

Daily chart of Computer Modelling Group (CMG.TO) - note the green volume spikes and stacking blue Darvas Boxes indicating a series of higher ranges within a primary uptrend. Also notice that the RSI has been screaming overbought the whole time.

www.cmgroup.com CMG is now the world's largest independent reservoir simulation vendor and the largest supplier of advanced processes modelling. We are proud of our history as a research organization. We continue that important research base and today are building on that solid foundation to be a dynamic software vendor offering the most modern reservoir simulation modelling products available.

In 1978 CMG was a small research company in Calgary, Canada. Today we are an actively growing public company and have five offices around the world. Coupled with our technical software development and sales success. CMG also provides consulting services to our worldwide client base. [...] With over 400 oil and gas companies and consulting firms in more than 50 countries, CMG is one of the largest independent providers of reservoir simulation software in the world. [...] At CMG, our goal is to empower you to maximize recovery of hydrocarbon assets in the most efficient way possible - using efficient production processes, efficient modelling algorithms and easy-to-use software.

To make money trading, you do not need to forecast the future. You have to extract information from the market and find out whether bulls or bears are in control. You need to measure the strength of the dominant market group and decide how likely the current trend is to continue. - Alexander Elder

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