Technology options on the TSX Index are thin in comparison to the wealth of tech stocks available south of the border. However, investors do not necessarily have to look outside of the country. Today we are going to look at three micro-caps available on Canadian indexes worth considering for those hungry for high-growth tech stocks in their portfolios.
Patriot One (TSX:PAT) develops security systems and is principally involved in the commercialization of a system that detects concealed weapons using radar technologies. The stock graduated to the TSX back in April. Its PATSCAN CMR radar screening device has attracted significant recognition. This tech has utilized AI and machine learning software and can be covertly deployed in a variety of ways.
This is exciting tech, especially given the trajectory of security market growth heading into the next decade. Just look at the meteoric rise of Avigilon, which designed and manufactured video surveillance equipment. It was eventually acquired by Motorola Solutions for $1 billion.
Patriot One stock had an RSI of 58 at the time of writing. It is trending toward technically overbought territory, but as a long-term bet there is a lot to like about this stock.
5 TSX Stocks Under $5Click here to learn more!
Kraken Robotics (TSXV:PNG) is a penny stock listed on the TSX Venture. It is engaged in the design, manufacture, and sale of software-centric sensors and underwater robotic systems. What are we talking about here? Mainly underwater sonar and laser scanner sensor equipment through its Sensors and Platforms segment and in its Power segment equipment such as drives, batteries, and thrusters. Shares have surged over 90% in 2019 as of close on July 4.
Earlier this year I’d discussed why it’s important for investors to get in on the automation trend. Kraken is even more interesting when we consider Canada’s Ocean Supercluster, a co-investment via the federal government and private sector with the aim of becoming a global leader in the ocean economy. In late June Kraken was awarded the first project in this ongoing effort.
Shares had an RSI of 57 at the time of this writing, which should come as no surprise given its hot start to the year.
Drone Delivery Canada
Drone Delivery Canada (TSXV:FLT) is working to develop a commercially viable drone delivery system that can navigate expansive Canadian geography. The stock garnered significant interest in late 2017 and early 2018 but has since struggled with volatility.
It has made some promising leaps in recent months, which should interest prospective investors. In early June, the company announced an agreement with Air Canada that will see the airliner market and sell DDC’s drone delivery services using its own platforms.
How does this market look at a glance? Adroit Market Research recently projected that the drone market will grow at a CAGR of 40.7% and hit $144.38 billion by 2025. A Research and Markets report estimated that the global drone logistics and transportation market will grow at a CAGR of 60% from 2019 to 2027 — a trajectory that illustrates is why DDC, an early mover in the Canadian market, is well worth your attention.
The stock had an RSI of 39 as of close on July 4, putting it in more favourable territory compared to our first two equities covered today.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.