4 Top Performing Tech Stocks Under $20 With Room to Run

  • Dec 27, 2019 AEDT
  • Team Kalkine
4 Top Performing Tech Stocks Under $20 With Room to Run

Investing doesn’t always pertain to large amount of capital and massive thinking abilities, sometimes it is about taking the right call no matter how small the stock appears. In fact, beginning small can be a good way to get familiar with the market. The catch is to spot low-priced stocks that also have extremely robust fundamentals.

Warren Buffet once said that “Price is what you pay. Value is what you get.” So how can investors be assured that the low-valued stocks they are pondering would yield substantial returns over the long term? Fundamentally, there is no magic formula or set theory but there are little complexities that make these stocks more desirable.

Investor returns are large with even a tiny gain in stock price, as the percentage gain on such stocks is proportionately much above average.

Stocks that trade within $20 tend to be more unpredictable than their costlier peers. However, investors can shovel up huge return with the correct low-priced stocks.

The Top 5 Benefits of Investing in Stocks Below $20

Tech Prospects Looks Cheerful in 2020

Technology has become abundant in many sectors including banking & finance, retail healthcare, automobiles and oil & gas.

From digitising retail outlets with automated check-out technology, streamlining payment systems, strong cybersecurity measures, transforming health care mechanisms and education with reliable data-driven perceptions, the ever-increasing clout of new and innovative technology aids nearly all sectors.

Furthermore, the enhanced implementation of 5G technology is expected to make more growth prospects in the telecom sector for technology companies next year. The wide adoption of cloud-based technology, artificial intelligence (AI) solutions, AR/VR reality devices, autonomous vehicles and Internet of Things (IoT) is the least we can point out. Hence, when it comes to the industry players in the technology space, it will not be too bold to presume a flourishing journey ahead.

At present time, major momentum is possibly to come from the upcoming markets. Governments in these nations are making an expenditure more on smart cities and IoT projects along with structural subsidies to enhance gen-next high-speed 5G broadband services.

Additionally, expanding macro-economic situation is anticipated to further improve growth prospects in 2020.

Approach to Pick Possible Stocks

Whether it is big or small, all industry players are trying to provide cutting-edge advanced technologies, which is expected to deliver robust return. Here we present four low-priced stocks under $20 that also enjoys strong fundamentals. Although these stocks are dicey in nature, they do have the potential to offer high rewards.

Webjet Limited (ASX: WEB)

Webjet Limited is a leading supplier of online travel services in both Australia and New Zealand. The company offers digital travel business including both consumer markets and wholesale markets worldwide.

Financial Highlights for FY2019 Period Ended 30 June 2019:

Total transaction value (TTV) for the period stood at $3.83 billion, up 27% year over year. The company reported total revenues for FY19 of $366.4 million, an increase of 26% year over year. EBITDA for the period went up 43% year over year and came in at $123.1 million. EBITDA margins expanded 395 basis points and came in at 33.6%. Net profit after tax increased 45% to $60.3 million for the period. Earnings per share stood at 47 cents, up 30% a yearly basis. The company paid a fully franked final dividend of 13.5 cents for FY2019.

What to Expect: For FY2020, the company anticipates TTV from Thomas Cook to be between $150-200 million. The company predicts additional EBITDA from WebBeds business between $27 million to $33 million. Further, CAPEX is expected to soar in the range of 10-15%.

Stock Performance

Webjet Limited has a market cap of $1.78 billion with ~ 135.6 million outstanding shares. Webjet Limited stock was trading at $13.245, up by roughly 1.107% (at AEDT 1:09 PM).

Rhipe Limited (ASX: RHP)

A cloud-based company, Rhipe Limited is engaged in offering licensing facility, business development and knowledge services, thus supporting its partners and software vendors with an end to end cloud solutions.

Financial Highlights for Fiscal 2019 Period Ended 30 June 2019:

The company reported gross sales of $252.5 million, up 28% year over year. Group revenue for the period stood at $48.4 million, an increase of 36% year over year. The company reported operating expenditure of $33 million, up 25% year over year. Operating profit for the period came in at $65 million, up 12.8% year over year. Operating cash flows for FY2019 stood at $12.1 million. The company exited FY2019 with cash and cash equivalent of $25.53 million, up from $22.69 million at the end of FY18.

Outlook: For FY20, the company expects to invest $0.6 million on the development of SmartEncrypt. The company also plans to invest in front office sales, marketing strategies and technical staff in order to boost higher number of customers across all countries. It also expects operating profit excluding Japan to be $16 million in FY2020.

Stock Performance

Rhipe Limited has a market cap of $288.64 million with ~ 140.12 million outstanding shares. Rhipe Limited stock was trading at $2.070, up by 0.485% (at AEDT 1:08 PM).

NEXTDC Limited (ASX: NXT)

NextDC Limited is a technology-based company that develops and operates independent data centres in Australia.

Financial Highlights for FY19 Period Ended 30 June 2019:

The company delivered revenues of $179.3 million, an increase 15% on a yearly basis. Underlying EBITDA for the period increased 13% year over year and came in at $85.1 million. Statutory net loss after tax was for the period was $9.8 million, as compared to a profit of $6.6 million in the year-ago period. Underlying capital expenditure came in at $378 million, up from $285 million reported in the previous year. The company’s sale from contracted utilisation stood at 52.5MW, an increase of 31% year over year. In FY19, interconnections came in at 10,972, up 27% year over year.

Outlook: For FY20, the company predicts revenues to be between $200 million to $206 million. Underlying EBITDA is predicted to be between $100 million to $105 million. The company expects capital expenses to be in the band of $280 million to $300 million. The company also concluded the buyout of land and building, which leads to annual rental savings of roughly $15 million. The company has set up a strong sales pipeline across its operating markets. NXT also predicts growth in cloud and mobile computing and internet traffic, which is likely to be a tailwind for the company in the near future. Further, the company’s strategies to launch new products adds to its positives.

Stock Performance

NextDC Limited has a market cap of $2.3 billion with ~ 345.39 million outstanding shares. NextDC Limited stock was trading at $6.725, up by roughly 0.825% (at AEDT 1:06 PM).

Splitit Payments Limited (ASX: SPT)

Splitit Payments Limited is a technology-based company, which is involved in offering cross-border online payment-based services to business and retailers. It supports customers with “buy now and pay later” facility by using their credit card without any additional fees.

Financial Highlights for Third Quarter FY19 for Period Ended 30 September 2019:

The company’s total number of merchants for the quarter stood at 624, up 97%. Total Customers for the period came in at 235,000, up 187% year over year. Merchant Transaction Volume for the period came in at US$30.5 million, up 100% year over year. Merchant fees increased 96% to US$466K for the quarter. Net cash used from operations during the quarter was US$6.92 million. The company exited the quarter with cash and cash equivalent of US$16.15 million.

What to Expect: In the fourth quarter, the company expects net cash outflow to be approximately US$3.61 million. The demand for instalment payment solutions is increasing worldwide and the company stands to take advantage of this growing necessity. The company is also well positioned to benefit from expanding customer base, partnership programs and accelerating merchant acquisition.

Stock Performance

Splitit Payments has a market cap of $210.28 million with ~ 311.53 million outstanding shares. Splitit Payments stock was trading at $0.67, down by 0.741% (at AEDT 1:05 PM).


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advi

Tech Prospects Looks Cheerful in 2020

Technology has become abundant in many sectors including banking & finance, retail healthcare, automobiles and oil & gas.

From digitising retail outlets with automated check-out technology, streamlining payment systems, strong cybersecurity measures, transforming health care mechanisms and education with reliable data-driven perceptions, the ever-increasing clout of new and innovative technology aids nearly all sectors.

Furthermore, the enhanced implementation of 5G technology is expected to make more growth prospects in the telecom sector for technology companies next year. The wide adoption of cloud-based technology, artificial intelligence (AI) solutions, AR/VR reality devices, autonomous vehicles and Internet of Things (IoT) is the least we can point out. Hence, when it comes to the industry players in the technology space, it will not be too bold to presume a flourishing journey ahead.

At present time, major momentum is possibly to come from the upcoming markets. Governments in these nations are making an expenditure more on smart cities and IoT projects along with structural subsidies to enhance gen-next high-speed 5G broadband services.

Additionally, expanding macro-economic situation is anticipated to further improve growth prospects in 2020.

Approach to Pick Possible Stocks

Whether it is big or small, all industry players are trying to provide cutting-edge advanced technologies, which is expected to deliver robust return. Here we present four low-priced stocks under $20 that also enjoys strong fundamentals. Although these stocks are dicey in nature, they do have the potential to offer high rewards.

Webjet Limited (ASX: WEB)

Webjet Limited is a leading supplier of online travel services in both Australia and New Zealand. The company offers digital travel business including both consumer markets and wholesale markets worldwide.

Financial Highlights for FY2019 Period Ended 30 June 2019:

Total transaction value (TTV) for the period stood at $3.83 billion, up 27% year over year. The company reported total revenues for FY19 of $366.4 million, an increase of 26% year over year. EBITDA for the period went up 43% year over year and came in at $123.1 million. EBITDA margins expanded 395 basis points and came in at 33.6%. Net profit after tax increased 45% to $60.3 million for the period. Earnings per share stood at 47 cents, up 30% a yearly basis. The company paid a fully franked final dividend of 13.5 cents for FY2019.

What to Expect: For FY2020, the company anticipates TTV from Thomas Cook to be between $150-200 million. The company predicts additional EBITDA from WebBeds business between $27 million to $33 million. Further, CAPEX is expected to soar in the range of 10-15%.

Stock Performance

Webjet Limited has a market cap of $1.78 billion with ~ 135.6 million outstanding shares. Webjet Limited stock was trading at $13.245, up by roughly 1.107% (at AEDT 1:09 PM).

Rhipe Limited (ASX: RHP)

A cloud-based company, Rhipe Limited is engaged in offering licensing facility, business development and knowledge services, thus supporting its partners and software vendors with an end to end cloud solutions.

Financial Highlights for Fiscal 2019 Period Ended 30 June 2019:

The company reported gross sales of $252.5 million, up 28% year over year. Group revenue for the period stood at $48.4 million, an increase of 36% year over year. The company reported operating expenditure of $33 million, up 25% year over year. Operating profit for the period came in at $65 million, up 12.8% year over year. Operating cash flows for FY2019 stood at $12.1 million. The company exited FY2019 with cash and cash equivalent of $25.53 million, up from $22.69 million at the end of FY18.

Outlook: For FY20, the company expects to invest $0.6 million on the development of SmartEncrypt. The company also plans to invest in front office sales, marketing strategies and technical staff in order to boost higher number of customers across all countries. It also expects operating profit excluding Japan to be $16 million in FY2020.

Stock Performance

Rhipe Limited has a market cap of $288.64 million with ~ 140.12 million outstanding shares. Rhipe Limited stock was trading at $2.070, up by 0.485% (at AEDT 1:08 PM).

NEXTDC Limited (ASX: NXT)

NextDC Limited is a technology-based company that develops and operates independent data centres in Australia.

Financial Highlights for FY19 Period Ended 30 June 2019:

The company delivered revenues of $179.3 million, an increase 15% on a yearly basis. Underlying EBITDA for the period increased 13% year over year and came in at $85.1 million. Statutory net loss after tax was for the period was $9.8 million, as compared to a profit of $6.6 million in the year-ago period. Underlying capital expenditure came in at $378 million, up from $285 million reported in the previous year. The company’s sale from contracted utilisation stood at 52.5MW, an increase of 31% year over year. In FY19, interconnections came in at 10,972, up 27% year over year.

Outlook: For FY20, the company predicts revenues to be between $200 million to $206 million. Underlying EBITDA is predicted to be between $100 million to $105 million. The company expects capital expenses to be in the band of $280 million to $300 million. The company also concluded the buyout of land and building, which leads to annual rental savings of roughly $15 million. The company has set up a strong sales pipeline across its operating markets. NXT also predicts growth in cloud and mobile computing and internet traffic, which is likely to be a tailwind for the company in the near future. Further, the company’s strategies to launch new products adds to its positives.

Stock Performance

NextDC Limited has a market cap of $2.3 billion with ~ 345.39 million outstanding shares. NextDC Limited stock was trading at $6.725, up by roughly 0.825% (at AEDT 1:06 PM).

Splitit Payments Limited (ASX: SPT)

Splitit Payments Limited is a technology-based company, which is involved in offering cross-border online payment-based services to business and retailers. It supports customers with “buy now and pay later” facility by using their credit card without any additional fees.

Financial Highlights for Third Quarter FY19 for Period Ended 30 September 2019:

The company’s total number of merchants for the quarter stood at 624, up 97%. Total Customers for the period came in at 235,000, up 187% year over year. Merchant Transaction Volume for the period came in at US$30.5 million, up 100% year over year. Merchant fees increased 96% to US$466K for the quarter. Net cash used from operations during the quarter was US$6.92 million. The company exited the quarter with cash and cash equivalent of US$16.15 million.

What to Expect: In the fourth quarter, the company expects net cash outflow to be approximately US$3.61 million. The demand for instalment payment solutions is increasing worldwide and the company stands to take advantage of this growing necessity. The company is also well positioned to benefit from expanding customer base, partnership programs and accelerating merchant acquisition.

Stock Performance

Splitit Payments has a market cap of $210.28 million with ~ 311.53 million outstanding shares. Splitit Payments stock was trading at $0.67, down by 0.741% (at AEDT 1:05 PM).


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advi

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