The tech penny stocks on our list have low EV/EBITDA multiples
SmallCapPower | July 28, 2016: With the help of the general uptrend in the stock market, tech stocks have been moving higher in recent weeks. Before considering buying tech penny stocks, investors should always consider valuation multiples to make sure they are not overpaying, such as the ones on our list with low EV/EBITDA multiples compared to its peers.
Intertain Group Ltd. (TSE:IT) – $10.09
The Intertain Group Limited, formerly Aumento Capital II Corporation, is an online gaming company that provides entertainment to customers. The Company offers bingo and casino games to its customers through Costa Bingo, Vera&John, Vera&Juan, Vera&John Social, Jackpotjoy, Starspins, Botemania, InterCasino, VIP Casino, and other brands. Its segments include Jackpotjoy, Vera&John, Mandalay and InterCasino.
- Market Cap: 712,023,916
- Revenues: 480,201,000
- Cash: 94,418,000
- EV/EBITDA: 5.5
Pivot Technology Solutions Inc. (CVE:PTG) – $0.435
IT Services & Consulting
Pivot Technology Solutions, Inc. focuses on the strategy to acquire and integrate technology solution providers, primarily in North America. The businesses acquired by the Company designs, sells and supports integrated computer hardware, software and networking products for business database, network and network security systems. The Company primarily serves customers throughout the United States.
- Market Cap: 73,579,933
- Revenues: 2,013,089,825
- Cash: 18,853,199
- EV/EBITDA: 7.7
Intrinsyc Technologies Corp. (TSE:ITC) – $1.34
Intrinsyc Technologies Corporation is a product developer and provides software, engineering services, and integrated solutions. The Company provides solutions for the development and production of mobile, embedded and the Internet of Things (IoT) devices with software solutions for Java or Component Object Model (COM) enterprise interoperability.
- Market Cap: 215,285,203.21
- Revenues: 19,242,721
- Cash: 7,996,225
- EV/EBITDA: 8.9
Points International Ltd. (TSE:PTS) – $11.87
Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations.
- Market Cap: 114,570,744.63
- Revenues: 399,500,595
- Cash: 59,432,181
- EV/EBITDA: 9.4
Mediagrif Interactive Technologies Inc. (TSE:MDF) – $17.59
Mediagrif Interactive Technologies Inc. is a Canada-based company, which provides e-business solutions to consumer and businesses. The Company is engaged in information technology and is an owner of various Web and mobile platforms, including Jobboom, LesPAC, Reseau Contact, MERX, InterTrade, Carrus and BidNet. Jobboom is a job sourcing and talent acquisition Website in Quebec. LesPAC is a classified Website in Quebec. Reseau Contact is engaged in online dating.
- Market Cap: 263,832,041
- Revenues: 73,020,000
- Cash: 10,901,000
- EV/EBITDA: 9.8
DISCLAIMER The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source. Ubika and/or its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities and/or commodities and/or commodity futures contracts in certain underlying companies mentioned in this site and which may also be clients of Ubika’s affiliates. In such instances, Ubika and/or its affiliates and/or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would lead to conflicts of interest and Ubika and/or its affiliates will use all reasonable efforts to comply with conflicts of interest disclosures and regulations to minimize the conflict.