RE:Edmonton Journalpage 2 of the article in the EJ...
Snipp completed a $12.3-million “bought deal” financing in February at 55 cents per unit, and its shares promptly spiked to nearly $1 apiece. The shares closed Monday at 81 cents each.
In simple terms, Snipp is harnessing the power of technology — in this case, smartphones — to replace the costly and time-consuming process of redeeming the coupons offered by consumer products companies.
“When you go to the grocery store you’ll often see promos from companies like Kraft saying ‘If you buy three boxes of Kraft dinner, we’ll give you a tub of Kraft mayonnaise or margarine for free,’ ” explains Taylor.
“So you have to clip a coupon and get your receipt to prove you bought it. That’s the purchase validation part. Then you mail it to a purchase validation shop that’s been hired by Kraft to check it and verify it.”
Using Snipp’s technology, consumers can simply take a photo of their receipt and send it in electronically to validate their purchase.
“So if you’re working with a company like Kraft you’re saving them tens of millions of dollars a year. It’s a massive growth area,” he says.
“The stock has been a monster for me. I own a lot of it and I still think it’s a buy because it’s just hitting an inflection point where I expect their revenues are going to multiply.”
Of course, Taylor isn’t the only investor who is finding attractive growth stocks, many in the tech and health care sectors.
Bruce Campbell, portfolio manager with Kelowna-based StoneCastle Investment Management, holds several of the bigger-cap names mentioned above in his Redwood Growth Class Fund, including CGI Group, Dollarama and Element Financial.
Campbell’s favourite small-cap stocks include Convalo, Patient Home Monitoring and Vogogo (TSXV: VGO), an electronic payment services firm.