11 Canadian Stocks with Strong Profitability Margins: Investment Idea of the Day

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Today, we have shortlisted 11 Canadian stocks across sectors that are expected to report strong gross profit, operating profit and net profit margins for fiscal year 2014. During past one month some of these stocks have registered price gains with daily average trading volumes in excess of 100,000.

Company Name

Ticker

Exchange

Sector

Market Cap
(C$MN)

Last Price

Average Volume
(1 Month)

Price Change (1-Month)

Gross Margin 2014(E)

Operating Margin 2014(E)

Net Profit Margin 2014(E)

Computer Modelling Group Ltd

CMG

TSX

Technology

892.2

11.30

141,224

-3.8%

78.8%

46.2%

36.4%

Pason Systems Inc

PSI

TSX

Energy

2,250.0

27.21

144,129

-13.2%

69.5%

39.9%

26.3%

Ritchie Bros Auctioneers Inc

RBA

TSX

Industrial

2,824.1

26.31

118,527

8.2%

88.5%

28.7%

20.9%

Enterprise Group Inc

E

TSX

Industrial

99.0

0.68

679,887

-6.8%

48.9%

21.6%

18.9%

Rio Alto Mining Ltd

RIO

TSX

Basic Materials

899.0

2.72

2,745,667

-5.9%

28.1%

24.3%

18.7%

Sandvine Corp

SVC

TSX

Technology

410.5

2.73

880,575

1.1%

76.4%

20.2%

18.2%

Black Diamond Group Ltd

BDI

TSX

Financial

926.5

21.60

213,417

-22.2%

50.2%

23.4%

15.0%

CanElson Drilling Inc

CDI

TSX

Energy

537.5

5.80

250,992

-10.8%

39.6%

21.9%

14.8%

Western Energy Services Corp

WRG

TSX

Energy

575.7

7.69

254,272

-14.5%

39.9%

22.1%

12.8%

Descartes Systems Group Inc/The

DSG

TSX

Technology

1,118.4

14.85

150,210

-3.7%

67.8%

14.4%

11.8%

Avigilon Corp

AVO

TSX

Industrial

719.2

15.45

453,302

-14.5%

55.6%

13.4%

11.0%

Source: Bloomberg

Company Description

Computer Modelling Group Ltd (TSX: CMG)
Computer Modelling Group Ltd. is an international computer software technology and consulting firm involved in the development and licensing of oil and gas reservoir simulation software. The company’s software assists petroleum company clients worldwide to extract significantly increased amounts of oil and gas from their reservoirs.

Pason Systems Inc (TSX: PSI)
Pason Systems Inc. provides rental oilfield instrumentation systems that are designed and manufactured for use on land-based drilling and service rigs. The company offers both wellsite rental services and Internet data management services.

Ritchie Bros Auctioneers Inc (TSX: RBA)
Ritchie Bros. Auctioneers Incorporated auctions industrial equipment, operating through various locations around the world. The company sells, through unreserved public auctions, used and unused industrial equipment, including equipment used in the construction, transportation, mining, forestry, petroleum, and agricultural industries.

Enterprise Group Inc (TSX: E)
Enterprise Group, Inc. is a pipeline construction and oilfield maintenance company. The company seeks business in Central and Northern Alberta’s oilfields.

Rio Alto Mining Ltd (TSX: RIO)
Rio Alto Mining Limited is a mineral exploration company. The company currently is focusing on the development of La Arena gold / copper project, located in north central Peru.

Sandvine Corp (TSX: SVC)
Sandvine Corporation develops and markets broadband network management tools for broadband Internet services providers.

Black Diamond Group Ltd (TSX: BDI)
Black Diamond Group Ltd. rents modular structures for use as workforce accommodations and temporary work space. The company provides temporary workspace for urban and industrial customers, the oilfield industry, and customers who work in remote areas.

CanElson Drilling Inc (TSX: CDI)
CanElson Drilling, Inc. manufactures, acquires and operates drilling rigs for the oil and natural gas industry. The company operates in the western Canadian Sedimentary Basin, the Permian Basin of west Texas, and the Ebano-PanucoCacalilao fields of Mexico.

Western Energy Services Corp (TSX: WRG)
Western Energy Services Corp. is an oilfield service company which provides contract drilling services in Canada and the United States. In Canada, Western also provides well servicing and oilfield rental services.

Descartes Systems Group Inc/The (TSX: DSG)
The Descartes Systems Group Inc. provides inter-enterprise software for the execution of supply-chain management, especially for delivery-intensive companies. The company’s products allow users to share and process information via the Internet. Descartes licenses software to customers worldwide.

Avigilon Corp (TSX: AVO)
Avigilon Corporation manufactures surveillance equipment. The company produces high definition, network-based video surveillance systems and equipment for video capture, transmission, recording, and playback.

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