Here are 16 Canadian tech stocks you should consider adding to your portfolio.
(A Top Pick Apr 09/20, Up 26%) It is not as racy as a SHOP-T. It is a large outsourcing firm. They have a great client base and are a great consolidator. They are always undervalued, caused by the organic growth being mid-single digits. The total growth is good. He is comfortable buying it here.
(A Top Pick Jul 29/20, Up 17%) #2 in the domain business. A cash cow. Steady and predictable. Also have a mobile business and a fibre business. In this environment, expects them to have many more installations and business should boom. Top management. Would buy at these levels.
One of the few companies in the world that respects shareholders and employees. Loves the company. A core holding. Excited about the spinoff Topicus. They're going to put more cash to work as they see opportunities. Fine over the long term.
For a few months it was the biggest company in Canada, surpassing RY-T. He used to own SHOP-T. He moved on because of high expectations and valuations. The concerns remain and are greater now than three years ago. It's going to face difficult comparisons to last year as we return to normalcy during 2021. They…
DSG-T vs. OTEX-T which to sell to raise cash? DSG-T, if you own it, you would have done very well, but the fair market value is 78% lower than where it is at now. There is a lot of momentum behind it but not a lot of value. OTEX-T is trading right at its fair…
A contract manufacturer for electronics, communications, and storage. The move to the cloud has benefited them. The stock has struggled for a while but it is too cheap to ignore right now. Top 10% on valuation. 0.6x book value, 4.3x enterprise to EBITA, and 4x cashflow. A cashflow machine with no concerns on the balance…
This is like SHOP-T. It is pricey and the market has high-expectations. There will be some structural spend but it may not be enough to justify the PE. There will be difficult comparisons to last year, a banner year.
A world leader in designing antenna for phones. Samsung is a major client. BYL is riding a wave of huge infrastructure spending needed for 5G. Their growth hit an air pocket during Covid when telco infrastructure spending slowed down. 2021 should be the turnaround year when that spending resumes. BYL also lowered their high debt…
Payout ratio is 56%. Sales are declining by 25% and earnings have fallen by 67%. He would be cautious and would look elsewhere. Yield 13%
Price target of $20.50 CAD. Cloud-based platform for enterprise and public sector. In the right place because of remote work. Should continue to go. Not cheap. Yield is 2.6%.
(A Top Pick May 29/19, Up 66%) He sold out previously. He liked the 5 year forecast. As we came into late last year some of the volatility in the stock was not what he was interested in so he exited. He believes they will be stronger going forward.
They sold their position due to the inconsistency of their results. He is watching it again, especially now that the momentum is improving. He is not buying yet, but will keep an eye on it.
He finds it interesting, but got "stop-lossed" out of it. They have a unique low powered cellular device that can be used for tracking. This is another type of device that consumers could look to buy. It could be used to track trailers, or even jack hammers. They did an equity raise a while ago…
(A Top Pick Mar 10/20, Up 5%) Inexpensive at 14x earnings. Earnings have grown at 13%. A secular grower. 600 open jobs right now that are work from anywhere jobs which opens up the talent pool. Great innovator and a great consolidator. Continues to buy it here.
Price target of $3.25. Optical sensors and instruments in the semi industry. Doing well, but pullback since February.
He got stopped out of this. It's well-run, but the casinos are closed so there's no revenue coming in. GC carries a reasonable amount of debt. Also, casinos have high operating expenses, even during this lockdown. He wants to see stability in their debt, though. In recessions, gambling performs well, though.