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The S&P/TSX Index continues to have a somewhat disappointing proportion of tech companies due to weighting of energy and resource giants in Canada. The Ottawa-based e-commerce company Shopify Inc. has stolen many headlines, but today we are going to look at three tech stocks trading under $25 that investors should monitor as we head into the final months of 2017.
BlackBerry Ltd. (TSX:BB)(NYSE:BB) has increased 47.2% in 2017 and 38% year over year. The Canadian multinational has rebounded nicely from its precipitous drop following the 2007-2008 Financial Crisis. In September, I targeted BlackBerry as a top stock for an anti-fragile portfolio. To be anti-fragile is to benefit from disorder, to thrive when exposed to shocks and volatility.
BlackBerry has evolved from a hardware company to a software company in a short period of time. CEO John Chen was brought on in November 2013 during a period of crisis and transition, and the stock has more than doubled since then. BlackBerry has gained a foothold in the rapidly growing cybersecurity industry. The company reported record software and services revenue of $196 million in the third quarter of 2017.
Solium Capital Inc. (TSX:SUM) is a Calgary-based company that provides technology and services supporting equity-based incentive plans. Shares of Solium have climbed 25.1% in 2017 and 48% year over year. The stock has surged 360% over a five-year period.
Solium released its third-quarter results on November 7. Revenue rose 4% to $20.8 million, and the company posted a net loss of $0.1 million compared to earnings of $1.9 million in Q3 2016. Solium entered a licence agreement with U.S. bank Morgan Stanley in the fourth quarter of 2016.
The corporate customers at the bank will transition to the Solium-branded version of Shareworks. The company also entered a licence agreement with UBS Financial. The resulting transaction costs saw operating expenses jump 20% in this previous quarter. Solium expects to see investments place a burden on profitability heading into 2018.
Avigilon Corp. (TSX:AVO) is a Vancouver-based designer, manufacturer, and marketer of video surveillance equipment and software. Shares of Avigilon have increased 54.5% in 2017 and 146% year over year. In a September article, I pinpointed Avigilon as a great target for investors looking to jump into the fast-growing cybersecurity industry.
Avigilon released its third-quarter results on November 7. It posted record revenue of $108.2 million, a 13% increase compared to $95.8 million in the third quarter of 2016. The company also reported adjusted EBITDA of $22.6 million in comparison to $16.7 million in the previous year.
Leadership was happy to report strong global demand. Avigilon also launched Avigilon Blue in the third quarter — a subscription-based cloud platform specializing in security and surveillance. The technology will allow clients to remotely access service sites and will also provide access to learning modules for video analytics.
It's not Apple. Or Google. Verizon or AT&T. In fact, you've probably never even heard this company's name. Yet it's so vital to the "smartphone" revolution that its shares have doubled time and time again since they first hit the shelves. And if industry insiders are right, the rapidly escalating war between iPhone and Android is about to push this stock even higher.
For the full behind-the-scenes story straight from Motley Fool Canada, just click here now.
Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and SHOPIFY INC. Avigilon, Shopify, and Solium are recommendations of Stock Advisor Canada.