Nuvei IPO was a big trend in 2020, many companies enjoyed the hype from those to make an entry in the market. We can name a few like Airbnb, Petco and Affirms. On the Canadian side, IPO seems to be more quiet, but that brings many opportunities for investors to grab those shares at a reasonable price. Here is two Canadian tech stock that IPOed in 2020 with a lot of room to run.
Dye and Durham (DND.TO)
Since its IPO last July, Dye and Durham made an astonish 166% return with the phenomenal rally since November. This company speacialized as a cloud for legal firms. However, this stock is still unknown by many Canadian retailers and hedge fund. The stock is trading 38 times the revenue with an operating margin of 32.19%. The company also made several acquisitons during the year, expanding their business in Autralia and in the REITS industry. Dye and Duham could be a major potential play in 2021 with the reopening of courts
Nuvei (NVEI.TO)
Another IPO play on the tsx is Nuvei. IPOed last September, the fintech company made a 30% return since its debut. The company speacialized in payment solutions, POS, SaaS, ecommerce, egaming, sport betting and crypto currency exchanges. The stock is trading at a 24 multiple of the revenue with an operating margin of 20.53%. The valuation of this stock is still cheap comparing to other fintech. Nuvei recently acquired Smart2Pay and Base Commerce providing new abilities for Nuvei’s payment solutions. Nuvei can see a major increase in revenue with the legalisation of sport betting and Egaming in the US.
Conclusion
Both of these company will release their quarterly earnings in February. Expectation are high for both oth them with an ESP of 0.21$ per share for Nuvei and 0.04$ per share for Dye and Durham. Will Nuvei beat expectation again? Will Dye and Durham suprise us with an new acquision? Who knows! But one thing is sure, they both seems to be a good Investment for the future.