Who said ‘buy and hold’ is dead? SmallCapPower.com takes a look at some Canadian companies that have rewarded patient investors that have held its shares over the past decade. Examining what has made these companies successful will hopefully help one find the next big winning stock for their portfolio.
Absolute Software Corporation (TSX: ABT): 2,676.0% share price surge
Our mobile devices have become so important to us that it’s become unthinkable to lose them or, even worse, have our data fall into someone else’s hands. It’s these fears that sparked boom times, at least early on, for Absolute Software.
The company’s software is installed on laptops, allowing the device to be traced in case it is lost or stolen. And, having been in business for more than 20 years the company is a leader in this field, boasting more than 30,000 commercial customers worldwide.
Had an investor purchased the stock 10 years ago and held it ever since, the lion’s share of the gains occurred in the first three years. Its stock price was trading north of $17 by the end of 2007 before being slammed down below $4 a little more than a year later.
Much of that can be attributed to the Great Recession, as computer hardware sales slumped. Absolute also made some acquisitions during that time, which had an impact on its financials.
By 2012, the company’s situation began to improve. Absolute’s sales were boosted by its expansion into new markets, such as government, international, corporate, and healthcare. And, perhaps more importantly, it started providing security solutions for smartphones. The company began byoffering a consumer theft recovery solution for Android Smartphones.As well, iPad and iPad mini owners may now prevent loss and recover from theft for their Apple devices using Absolute’s software.
Thus by fiscal year-end 2013, the company reported revenue of US$83.2 million, up 12% from 2012.
Absolute Software’s resurgence is expected to continue following its June 13, 2014, announcement that it had appointed Geoff Haydon, formerly of EMC Corporation, as its new CEO. Cormark Securities analyst Richard Tse, in a research update, wrote that one of the biggest negatives at the firm was its history of unfocused leadership, but applauded the hiring of Mr. Haydon as he believed his extensive enterprise software background can extract value from Absolute’s many products.
Its stock price has been reflecting these positive developments, moving from about $4 a share at the start of 2012 to nearly $7 today. Absolute Softwarealso pays a dividend, with the stock currently yielding about 3.5%. Mr. Tse maintained his “Buy” rating as well as an $8.50, one-year target on the stock, and believes the company will eventually put itself up for sale.
Read more top performing Canadian stock articles:
http://www.smallcappower.com/posts/aricle-top-performing-canadian-stocks-june-2014
http://www.smallcappower.com/posts/article-top-performing-canadian-stocks-16-5-2014
http://www.smallcappower.com/posts/article-food-franchisor-serves-up-1924-earnings-increase-may-2014
Please continue to follow SmallCapPower.com to discover other Top Performing Canadian Stocks Over the Past 10 Years.
