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3 Tech Stocks Under $10 to Target Right Now

Shopify Inc. (TSX:SHOP)(NYSE:SHOP) appears to be stealing the mantle of the most impressive Canadian tech stock for the fourth year running, as it has burst out of the gate in 2018. Shopify stock has climbed 43.6% in 2018 as of close on March 6, and it remains one of the most attractive options on the Toronto Stock Exchange. However, Shopify stock comes at a hefty price tag for potential buyers.

With that in mind, here are three tech stocks under $10 that are worth a look for investors on the hunt for growth in 2018.

NexJ Systems Inc. (TSX:NXJ)

NexJ is a Toronto-based company that provides cloud-based software solutions. Specifically, the company provides Intelligent Customer Management products for the financial services industry. NexJ stock is down 2.2% in 2018 as of close on March 6 and has dropped 41% year over year. The company released its 2017 fourth-quarter and full-year results on February 21.

Revenue dropped 18% year over year to $27.5 million, and the company reported a net loss of $1.9 million compared to net earnings of $334,000 in the prior year. The company announced that it had signed and begun a project at Emirates National Bank of Dubai and also appointed a new president in 2017.

A huge portion of NexJ’s revenue is international — over 80% — but almost 100% of its cost base is domestic. In addition to the organic growth it hopes to demonstrate in 2018, a weak Canadian dollar could also provide upward momentum.

Mogo Finance Technology Inc. (TSX:MOGO)

Mogo Finance is a financial technology company that offers credit solutions to its client base. FinTech has sought to move in on younger consumers in a tightening credit environment. Mogo stock has plummeted 22.8% in 2018 so far but is up 62.5% year over year. The company released its 2017 fourth-quarter and full-year results after trading closed on March 6.

Mogo Finance posted a record annual gross profit margin of 67% compared to 62% in the prior year. Subscription and fee-based revenue climbed 96% year over year and now makes up 31% of Mogo’s total revenue. This increase was powered by new product and services offerings. Mogo added 196,000 net new members in 2017, which represented a 56% increase from 2016.

The company also announced that it is preparing to launch MogoCrypto, which will allow Mogo members to buy and sell Bitcoin through a MogoAccount.

Espial Group Inc. (TSX:ESP)

Espial is an Ottawa-based company that develops multi-screen client software solutions. Espial stock has increased 0.5% in 2018 and is down 15% year over year. The company released its 2017 fourth-quarter and full-year results on February 22.

Total revenue for the full year rose to $33.4 million compared to $28.6 million in 2016. Operating expenses climbed to $32.7 million from $26 million, and the gross margin fell to 74% from 75%. In December, the digital television provider Eastlink, the largest privately owned cable company in Canada, announced that it would adopt Espial’s cloud-based platform.

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Fool contributor Ambrose O'Callaghan owns shares of Mogo Finance Technology Inc. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.

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