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TSX Venture 50 Update: How 2015's Top Stocks Are Faring Today
Jan. 18, 2016 03:15PM PST
Life Science Investing News
These three stocks were on last year’s TSX Venture 50 list. How are they doing today?
It’s easy to get wrapped up in the hottest new stocks, but for many investors, life science and tech investing are longer-term games. That means it’s important to keep an eye on stocks with good prospects.
With that in mind, the Investing News Network took a look at last year’s TSX Venture 50 list. The list, put together by the TSX Venture Exchange, ranks companies listed on the exchange based on key measures of market performance over the 2014 calendar year. It includes 10 companies from each of the exchange’s five industries, including the tech and life sciences spaces.
Here’s a look at how the TSX Venture 50’s three top tech and life sciences stocks fared last year, in 2015, plus an overview of where they might be headed in 2016.
1. Patient Home Monitoring (TSXV:PHM)
Market cap: $196.29 million
In 2014, Patient Home Monitoring saw a 429-percent increase in market cap. The company provides patient services such as home monitoring and chronic disease management, and also acquires other companies in related fields. Some of its subsidiaries include PHM Home Monitoring, Resource Health Investors, Resource Medical Group, Resource Health Investors Charleston and Care Medical Partners.
This company’s share price continued to increase through the first third of of 2015, hitting an all-time high of $1.96 on April 20. However, after this peak, Patient Home Monitoring’s share price began to fall; ultimately, it closed out 2015 down 9.72 percent. Since the beginning of 2016, the company’s share price has fallen another 10.77 percent and is currently trading at $0.58.
2. POET Technologies (TSXV:PTK)
Market cap: $175.55 million
2014 was a great year for POET Technologies, a company that designs semiconductor products for military and industrial applications. Its share price jumped a whopping 253 percent that year. 2015, on the other hand, was a more challenging year for the company — it incurred a share price drop of 25.19 percent during the period.
Like Patient Home Monitoring, POET Technologies hit an annual high in April, and was trading at $1.99 on April 7. Currently, shares of the company are changing hands at $0.88, which is a 2016 year-to-date drop of 12.88 percent.
3. Snipp Interactive (TSXV:SPN)
Market cap: $40.14 million
Snipp Interactive is a capital pool company that’s engaged in negotiating acquisitions and participation within businesses. In 2014, the company witnessed an 878-percent increase in market cap, the greatest leap of any company listed in this article.
Unfortunately, Snipp Interactive followed the trend of the other companies and saw a net loss in share price in 2015. Its share price dropped 19.09 percent during the period, and it closed at $0.445. Today,the company’s share price is trading even lower, at $0.375, representing a year-to-date decline of 15.73 percent.
Investor takeaway
As these companies illustrate, intense growth one year doesn’t necessarily spell future progress. Investors must therefore be very discerning about what stocks to purchase if they have the long haul in mind. It’s intriguing to consider these tech and life science stocks as a short-term strategy, but sustained growth is paramount for longer-term investments.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.