By Angela Harmantas
News that a major Canadian mobile technology company landed a significant investment from a Chinese company came as welcome relief amid more doom and gloom from the Asian markets. Today on Smallcappower we look at Canadian tech stocks that are finally turning a profit, but with the positive comes negative as our analysts rate US stocks that are suffering thanks to Chinese exposure. Also, our readers respond to a campaign promise that may pose huge risks for Canadians – here’s what you need to know today:
We talk a lot about resource investing here at Smallcappower, but with the way that sector’s been performing lately I think we’re ready for some brighter news. The technology realm isn’t terribly dissimilar to resources, with high risks that can lead to huge payoffs for savvy investors. Tech stocks, like resources, require patience and discipline, as shareholders have to wait multiple quarters before seeing the company turn a profit. Today on the site we profile 4 Canadian tech stocks that are finally turning a profit. I wonder if these companies could get a boost from Tuesday’s news that Waterloo-based chat app Kik is now valued at C$1 billion after a $50 million investment from a major internet service provider in China?
It doesn’t look as if China’s economic free-fall is about to stabilize anytime soon. On Tuesday, the yuan weakened yet again against the dollar and the two major market indexes – the Shanghai Composite and the CSI300 – each fell more than 6 percent. If you’re a shareholder of a company with Chinese exposure, are you nervous about your investment? Our analysts looked at a few US stocks that are suffering thanks to China’s economic volatility, but be warned – it’s not a definitive list.
Would you want to borrow money from your RRSPs in order to buy your first home? I know many of you aren’t first-time buyers, but Stephen Harper’s idea to raise the withdrawal limit to $35,000 has inspired some strong reactions from our audience. A reader shared this with me: “Sure, allowing people to withdraw funds from RRSPs for a down payment on a house will temporarily benefit the economy, but the end result is more debt and higher prices and many are unable to replace the money drawn from their RRSPs even in 15 years. These are the games that politicians play on unsophisticated consumers bribed with their children and grandchildren’s future earnings.” These are strong words, but I tend to agree. Where do you stand? I love hearing your feedback so keep your comments coming!
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
