The TSX Venture 50 list is a good place for investors to start when searching for best technology stocks to invest in. Released every year, the list ranks the exchange’s strongest performers across five sectors: cleantech and life sciences, diversified industries, mining, oil and gas and, of course, technology. Companies are chosen based on three equally weighted criteria: market cap growth, share price appreciation and trading volume.
Below is an overview of the 10 best technology stocks to invest in according to the 2016 TSX Venture 50 list.
1. Pivot Technology Solutions (TSX:PTG)
Pivot Technology Solutions graduated on to the Toronto Stock Exchange, and began trading under the symbol PTG on December 19, 2016. Pivot provides tech solutions and services that help organizations design, build, implement and maintain infrastructure for computing and communication. The company has a number of subsidiaries, including ACS Holdings (Canada), Pivot Technology Solutions, Pivot Shared Services, ACS (US), New ProSys and Sigma Technology Solutions.
In August, the company reported revenues of $706.5 million in H1 2016, which is up by 8.0 percent compared to H1 2015. Pivot also reported a gross profit of $7.1 million, which is up by 9.2 percent compared to the same period in the prior year. In November, the company declared a quarterly cash dividend of CAD $0.01 per share.
2. TIO Networks (TSXV:TNC)
TIO Networks is a strong player in Canada’s fintech scene. The IT company specializes in processing bill payment transactions through a secure, internet-enabled platform. Essentially, the company operates as a cloud-based, multi-channel bill payment processor serving North American telecom, wireless, cable and utility network operators.
In February 14, 2017, the company announced a definitive agreement with PayPal Holdings (NASDAQ:PYPL), whereby PayPal will acquire TIO for approximately USD $233 million in equity value. TIO will operate as a service within PayPal upon closing of the acquisition, which is expected in the second half of 2017.
3. Quorum Information Technologies (TSXV:QIS)
An IT company focused on the automotive retail business, Quorum Information Technologies develops, markets, implements and supports its software product XSELLERATOR. This product is a dealership management system that is delivered to General Motors (NYSE:GM), Chrysler (NYSE:FCAU), Hyundai (KRX:005380) and Kia (KRX:000270), among others.
4. Photon Control (TSXV:PHO)
Photon Control designs, manufactures and distributes a range of optical sensors and instruments used to measure temperature, pressure, position and flow. Some of its products include fiber optic temperature sensors, spectroscopes and the Focus 2.0 Optical Gas Flow Meter.
In August, Photon reported a generated sales revenue of $7.2 million in Q2 2016, with a 26 percent increase in its sales orders.
Independent research form KeyStone Financial spotlighted Photon Control in an interview with us in January 2017. When asked why they picked Photon Control, KeyStone CEO Ryan Irvine said, “They have a record backlog right now. And the balance sheet is tremendous which is what we love: $30 million in cash for a company that trades at a dollar.”
5. Apivio Systems (TSXV:APV)
Apivio Systems designs, develops, manufactures and sells communications equipment and software, including voice over internet protocol (VoIP) telephone solutions. The company’s products are typically designed for small- and medium-sized enterprises, in addition to home offices. Apivio sells products and services to telephone companies and a network of dealers and distributors located primarily in South Korea.
In February, Haywood analyst Pardeep Sangha reiterated his “buy” rating for the company and one-year price target of $1. After visiting the company’s operations in South Korea, he told Cantech Letter, “we are maintaining our $1.00 target price, but now have a greater appreciation and confidence in the Korean operations.”
In February 1, 2017, the company announced its rejection of the unsolicited offer from Nuri Telecom Company, citing that, “the Nuri Offer significantly undervalues Apivio and is not in the best interests of Apivio or its shareholders.”
6. AcuityAds Holdings (TSXV:AT)
AcuityAds Holdings provides targeted digital media solutions, allowing advertisers to connect intelligently with their audiences across a variety of platforms, including online display, video, social and mobile campaigns.
In August, AcuityAds reported a 53 percent increase in total revenue for Q2 2016 compared to Q2 2015. The company also acquired 140 Proof, Inc., a social and mobile targeting company, for an all-cash deal of up to $20 million USD. The company announced the opening of its sales office in London in February 2017.
The President’s Club Investment Letter’s Fabrice Taylor recently gave his thumbs up on BNN, stating that he, “is very, very impressed by the CEO,” and that he would hold on to this stock.
7. GINSMS (TSXV:GOK)
GINSMS is a mobile tech and services company focused on cloud-based application-to-peer (A2P) messaging services, as well as software products and services. The company is divided into two segments: messaging and software products and services.
On November 11, the company announced its financial results for the second quarter and nine months ended September 30, 2016. It saw revenue of $4,814,174 for the nine months preceding that date, as compared to $3,225,387 for the nine-month period ended on September 30, 2015.
8. Opsens (TSXV:OPS)
Opsens operates in the interventional cardiology, industrial and oil and gas markets. In interventional cardiology, the company offers OptoWire II, an optical-based pressure guideware. Opsens also develops, manufactures and installs fiber optic sensing solutions for various applications, such as the monitoring of oil wells. The company’s optical-based sensors measure temperature and pressure in oil wells that use steam-assisted gravity drainage technology.
On January 26, 2017, the company reported a 207 percent increase in Fractional Flow Reserve revenues of $2,743,000, compared with $893,000 in the same quarter last year.
On October 13, 2016 QHR announced with Loblaw Companies Limited (TSX:L) that Loblaw acquired all of the outstanding common shares of QHR for $3.10 per share in cash.
QHR provides solutions to the healthcare information technology sector. The company focuses on developing technologies in the healthcare and social services sectors. More specifically, the company’s technologies enable secure records management for clinical environments.
10. Snipp Interactive (TSXV:SPN)
Snipp Interactive provides marketing promotions, rebates and loyalty solutions using a complete suite of technology for the management and implementation of promotions and cross channel loyalty programs.
On January 3, 2017, the company reported record sales for the month of December: over US $1.5 million worth of deals were made across 23 programs for 20 different clients.
This is an updated version of an article first published on February 28, 2016 on Technology Investing News.
Securities Disclosure: I, Pia Rivera, hold no direct investment interest in any company mentioned in this article.