In the spirit of Berkshire Hathaway CEO Warren Buffett’s recent tech talk, today we feature five TSX tech stocks that could perform well in 2017
SmallCapPower | May 9, 2017: The Berkshire Hathaway annual meeting had people in the business world talking this weekend. Warren Buffett, speaking about Artificial Intelligence (AI), stated that, although this technology would result in significantly less employment in certain areas of the economy, it would be a net benefit to society. In the spirit of Mr. Buffett’s discussion on technology, today we have identified five TSX tech stocks that are spending big on innovation, which is being reflected in the company’s bottom line.
Mediagrif Interactive Technologies Inc. (TSX: MDF) – $15.22
Online Services
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. MERX is engaged in the development of e-sourcing technologies. InterTrade provides business to business (B2B) e-commerce solutions that facilitate the exchange of business documents.
- Market Cap: $228,110,952
- Total Revenue (LTM): $73,020,000
- Debt to Equity (LTM): 21.3%
- YTD Price Change: -19.7%
- 2016 R&D Spending: $38,293,000
- Gross Profit Margin: 77.9%
Novadaq Technologies Inc. (TSX: NDQ) – $10.14
Advanced Medical Equipment & Technology
NOVADAQ Technologies Inc. is a medical device company that primarily develops, manufactures and markets real-time fluorescence imaging products that are designed for use by surgeons in the operating room and other clinical settings where open and minimally invasive surgery or interventional procedures are performed. The Company’s SPY fluorescence imaging technology platform (SPY Fluorescence Imaging) provides clinically relevant anatomic and physiologic images of blood flow in vessels and micro-vessels during a range of surgical and outpatient procedures performed in the operating room or clinic.
- Market Cap: $586,121,010
- Total Revenue (LTM): $107,534,829
- Debt to Equity (LTM): 0.0%
- YTD Price Change: 6.8%
- 2016 R&D Spending: $10,593,000
- Gross Profit Margin: 57.0%
Pure Technologies Ltd. (TSX: PUR) – $4.90
Industrial Machinery & Equipment
Pure Technologies Ltd. (Pure) is engaged in the development and application of technologies for inspection, monitoring and management of physical infrastructure, including water and hydrocarbon pipelines, buildings and bridges. Its technologies include SoundPrint acoustic monitoring technology, which is used to provide continuous remote health monitoring of water and wastewater pipelines, bridges, buildings, parking structures and other infrastructure components; SoundPrint Acoustic Fibre-Optic (AFO) technology, which is a fiber-optic monitoring system used for structural monitoring of prestressed concrete water and wastewater pipelines, and Armadillo Tracks Remote Tracking Units, which is a PureHM technology and an Internet based pig tracking and pipeline monitoring system that integrates acoustic geophones, magnetic sensors and other technologies to monitor pipelines for pig passages and environmental changes.
- Market Cap: $267,479,058
- Total Revenue (LTM): $115,074,000
- Debt to Equity (LTM): 0.0%
- YTD Price Change: 2.1%
- 2016 R&D Spending: $10,905,000
- Gross Profit Margin: 80.3%
Vecima Networks Inc. (TSX: VCM) – $10.90
Communications & Networking
Vecima Networks Inc. is engaged in creating technology solutions that allows network service providers to connect people and enterprises to information and entertainment across the world. The Company is a designer and manufacturer in the broadband cable and wireless network infrastructure market. The Company’s segments include Video and Broadband, YourLink and Telematics. YourLink operates various small cable and broadband wireless service providers that provide high-speed data, telephone and video services to parts of rural British Columbia, as well as fixed wireless data and telephone access through much of Saskatchewan to both residential and business subscribers. Telematics include provision of fleet management and maintenance solutions for small and medium sized fleets across North America through various brands, including Nero Global Tracking and FleetLynx.
- Market Cap: $242,192,811
- Total Revenue (LTM): $108,421,000
- Debt to Equity (LTM): 1.6%
- YTD Price Change: 18.0%
- 2016 R&D Spending: 21,847,279.36
- Gross Profit Margin: 68.5%
Neovasc Inc. (TSX: NVCN) – $2.08
Advanced Medical Equipment & Technology
Neovasc Inc. (Neovasc) is a specialty medical device company that develops, manufactures and markets products for the cardiovascular marketplace. The Company’s segment is the development, manufacture and marketing of medical devices. Its products include the Tiara technology in development for the transcatheter treatment of mitral valve disease, the Neovasc Reducer for the treatment of refractory angina, and tissue products. The Tiara is in preclinical/early clinical stage development to provide a minimally invasive transcatheter device for patients experiencing mitral regurgitation (MR) as a result of mitral heart valve disease. The Reducer is an hourglass-shaped, balloon-expandable, stainless steel, bare metal device, which is implanted in the coronary sinus, creating a restriction in venous outflow from the myocardium (the muscular layer of the heart wall).
- Market Cap: $162,539,594
- Total Revenue (LTM): $12,775,690
- Debt to Equity (LTM): 0.0%
- YTD Price Change: -10.3%
- 2016 R&D Spending: $25,434,217.48
- Gross Profit Margin: 25.5%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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