- 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.
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.
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.