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Summary
- The information technology sector outperformed most sectors in 2020 amid the pandemic.
- This year too, as work-from-home operations and demand for online services persist amid rising COVID cases, this sector is likely to witness a boom
- The Toronto Stock Exchange Venture (TSXV) has a few junior tech stocks that are available at lower prices.
The information technology sector outperformed most sectors in 2020 amid the pandemic. This year too, as work-from-home operations and demand for online services persist amid rising COVID cases, this sector is likely to witness a boom.
The Toronto Stock Exchange Venture (TSXV) has a few junior tech stocks, available at lower prices, that you might want to explore as an entry point for long-term investments. So, let’s explore the stocks of TSXV-listed Blackline Safety Corp (TSXV:BLN) and Sangoma Technologies Corporation (TSXV:STC).
Blackline Safety Corp (TSXV:BLN)
Blackline Safety Corp offers a range of products and services to protect people and property using advanced technology. At a time when people are staying indoors, chances are high that the company might witness a surge in demand for its products.
On Thursday (10AM EST), May 13, Blackline shares were trading at C$ 8.45 apiece, one per cent down from its previous close of C$ 8.55. The junior tech stock dipped by 3.5 per cent over the past week, and investors could use this price as an entry point.
Source: Pixabay
Over the past year, Blackline stock swelled by as much as 69 per cent. Its year-to-date (YTD) growth stands at 13 per cent.
Blackline posted a revenue of C$ 10.7 million, up 20 per cent year-over-year (YoY), in its first quarter of fiscal 2021.
Sangoma Technologies Corporation (TSXV:STC)
Sangoma Technologies Corporation provides services to companies for ensuring smooth remote work for their teams. With the work-from-home regime likely to continue for most enterprises this year, Sangoma could benefit from it.
The junior tech company's sales rose 10 per cent YoY to C$ 35.3 million in Q2 FY21. Sangoma posted net earnings of C$ 2.46 million in the second quarter of 2021, as against a net loss of C$ 1.33 million in Q2 FY20.
Sangoma's price-to-earnings (P/E) ratio is 37.5 and it offers an 8.4 per cent return on equity (ROE).
STC stock was trading at C$ 3.8 on Thursday (10AM EST), down from its 52-week high of C$ 5.5 (February 9, 2021).
The stock witnessed a staggering growth of 103 per cent over the last year. This year, it gained about nine per cent.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
