Tech penny stocks receive little, if any, analyst coverage so good companies often get overlooked by the market.
SmallCapPower | June 22, 2016: Seeing that many tech penny stocks are underfollowed, there’s greater chances of mispricing by the market. We urge investors to take a look at the tech stocks on our list, as we used the EV/LTM EBITDA multiple to compare how each stock was trading relative to its peer group in the tech space. We would like to note that the EV/EBITDA average of the penny stocks in the tech space is 23x.
Intrinsyc Technologies Corp. (TSE:ITC) – $1.28
Software
Intrinsyc Technologies Corporation is a product developer and provider of 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.
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Market Cap: 26,448,817.00
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Revenues: 19,242,721
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Operating Income: 2,013,987
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EV/EBITDA: 8.48
Mediagrif Interactive Technologies Inc. (TSE:MDF) – $17.25
Online Services
Mediagrif Interactive Technologies Inc. is a Canada-based e-commerce solutions company. It provides information technology (IT) services and owns several mobile platforms, including Jobboom, LesPAC, Réseau Contact, MERX, InterTrade, Carrus, BidNet and SourceSuite. The Company operates in several sectors, including electronic components, computer equipment and medical equipment, automotive aftermarket, wine and spirits, diamonds and jewelry, classified ads, supply chain and Government opportunities.
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Market Cap: 258,732,387.75
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Revenues: 73,020,000
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Operating Income: 23,035,000
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EV/EBITDA: 9.60
Points International Ltd. (TSE:PTS) – $12.45
Online Services
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. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com website.
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Market Cap: 215,285,203.21
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Revenues: 399,500,595
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Operating Income: 8,295,190
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EV/EBITDA: 10.44
Tucows Inc. (TSE:TC) – $30.85
Online Services
Tucows Inc. is engaged in providing Internet services. The Company’s segments include Domain Services and Network Access Services. The Domain Services segment has over three service offerings, being wholesale and retail domain name registration services, value added services and portfolio. The Network Access Services segment includes mobile services and other services. The Network Access Services segment is engaged in the sale of retail mobile phones and services (Ting Mobile) to individuals and small businesses through the Ting Website, as well as other network access services, including high speed Internet access, Internet hosting and network consulting services.
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Market Cap: 114,570,744.63
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Revenues: 234,509,969
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Operating Income: 26,180,451
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EV/EBITDA: 11.18
Pivot Technology Solutions Inc. (CVE:PTG) – $0.38
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. The Company, together with its portfolio companies and partners, delivers solutions that enable organizations to design, build, implement and maintain computing and communication infrastructure that addresses their business needs.
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Market Cap: 64,907,136.20
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Revenues: 2,013,089,825
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Operating Income: 8,272,490
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EV/EBITDA: 9.43
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