The smaller-cap Canadian tech stocks we’ve found have rallied at least 30% over the past month on increased volume
SmallCapPower | January 21, 2020: During 2019, The S&P/TSX Capped Information Technology Index rallied 65%, outperforming the S&P TSX Composite Index, which was up 23%. Year-to-date, the TSX Technology index has also outperformed, returning 8.6% while the TSX has returned 2.9%. The 2020s are expected to bring technologies such as blockchain, 5G, Internet of Things (IOT), Artificial Intelligence, and Quantum Computing to mass adoption, which could lead to further outperformance of the technology index over the broader market. Today we have identified four Canadian tech stocks that have rallied over the past month on increased price and volume momentum, which could continue into 2020. Price and volume momentum indicate bullishness, as increased share prices on higher volumes show heightened investor interest in a stock.
*Share price data as at January 17, 2020, data obtained from S&P Capital IQ
Hut 8 Mining Corp. (TSX:HUT) – $1.69
Cryptocurrency Mining
Hut 8 Mining is a Canada-based cryptocurrency miner. Hut 8 wants to become the biggest cryptocurrency miner, by using its BlockBox AC manufactured in partnership with Bitfury to mine Bitcoins using conventional datacenter infrastructure. Hut 8 currently operates a total of 73 BlockBox Data Centers, including 56 BlockBoxes at its facility in CMH, Alberta, with each BlockBox having 1.2 MW of capacity, representing an aggregate of 67.2 MW of maximum operating power capacity. Hut 8 has a total maximum operating power capacity of 85.9 MW and an average actual operating hash rate of over 640 Petahashes per second. On November 13, 2019, Hut 8 reported Q3/F19 financial results, highlighted by 1,978 bitcoins mined at an average cost of US$3,394 per coin.
- Market Cap: $152.8M
- 30-Day Return: +60.2%
- YTD-Return: +54.2%
- 30-Day Average Trading Volume: 89,980
- 90-Day Average Trading Volume: 78,780
Quisitive Technology Solutions, Inc. (TSXV:QUIS) – $0.30
Technology & Cloud Solutions
Quisitive is a digital technology consulting firm that provides organizations with Microsoft Cloud (Azure, Dynamics, and Office 365) solutions, as well as proprietary software as a service (SaaS) solutions and cloud data services. Quisitive is one of 35 companies to have earned the “National Solution Provider” designation from Microsoft. Quisitive helps its clients harness the power of the Microsoft cloud and technologies, such as artificial intelligence, machine learning, IOT, and blockchain through customized solutions. Quisitive’s goal is to become the premier Microsoft Solutions provider, and is planning to scale organically and through acquisitions. On January 1, QUIS announced that it had closed its acquisition of Menlo Technologies, a provider of Microsoft technology, corporate consulting, and business software and systems.
- Market Cap: $33.0M
- 30-Day Return: +53.8%
- YTD-Return: +20.0%
- 30-Day Average Trading Volume: 114,060
- 90-Day Average Trading Volume: 132,200
CounterPath Corporation (TSX:PATH) – $3.33
Technology – SaaS
CounterPath Corporation designs, develops and sells software and services that enable enterprises and telecommunication service providers to deliver Unified Communications (UC) services, including voice, video, messaging and collaboration functionality, over their Internet Protocol (IP) based networks. The Company is engaged in the design, development, marketing and sale of personal computer and mobile application software, gateway server software and related professional services, such as pre and post sales, technical support and customization services. It also offers a cloud-based solution to businesses known as Bria SaaS. CounterPath cloud-based solutions are deployed worldwide by Airbnb, AmeriSave, BT, Citibank, Comcast, Fusion, Fuze, Honeywell, Liberty Global, Uber, Windstream and others.
- Market Cap: $20.3M
- 30-Day Return: +189.6%
- YTD-Return: +182.2%
- 30-Day Average Trading Volume: 41,840
- 90-Day Average Trading Volume: 18,610
Bitfarms Ltd. (TSXV:BITF) – $0.70
Cryptocurrency Mining
Bitfarms is a vertically-integrated blockchain infrastructure company that focuses on providing computing power to cryptocurrency networks, such as Bitcoin. Bitfarms operates four blockchain compute centers through its ownership of Backbone Hosting Solutions Inc. For each crypto network that it secures and processes a transaction, the Company earns a fee. Currently, the Company has four facilities that it operates in Quebec: Farnham, which has 10 MW capacity; Saint-Hyacinthe with a 10MW capacity; Cowansville, which has a 4MW capacity; and Magog with a 10 MW capacity. On November 27, 2019, Bitfarms announced a third-quarter revenue increase of 42% to US$9.7M.
- Market Cap: $58.5M
- 30-Day Return: +34.0%
- YTD-Return: +34.0%
- 30-Day Average Trading Volume: 140,950
- 90-Day Average Trading Volume: 137,160
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