Sangoma Technologies  (STC TSX Venture)

Over the past 10 years, Sangoma has grown from a single product company with $10 million in revenue to a global communications solution provider with revenue that should exceed $250 million in fiscal 2022. In March of this year, Sangoma closed a transformational acquisition with the purchase of Star2Star which increased their scale, margins, and recurring revenue. Unified Communications is a large addressable market and despite Sangoma’s strong historical execution, the stock trades well below its peer group. We are watching for updated guidance in the fall as well as a Nasdaq listing later this year/early next year.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
CTS TSX  Y N Y 
 GSY TSX  Y N Y 
 STC TSX VENTURE  Y N Y 

 

INVESTING STRATEGY

Focus on small and mid-cap Canadian stocks

  • We focus on high quality Canadian small and mid-cap stocks as we believe it is a more inefficient portion of the market as opposed to large caps.  There are fewer investors paying attention to this segment of the market, the companies grow faster, and there is better access to management. As a smaller fund we are able to purchase stocks that may be too small or too illiquid for larger funds and ETFs

Growth stocks at a reasonable price

  • The foundation of our strategy is to look for high growth companies that we can buy at a reasonable valuation. Once we find a company that meets our criteria, we aim to own it for a long period of time and augment our returns through trading strategies.  

Concentrated Portfolio

  • We run a concentrated portfolio in which our top ten positions typically make up 70 per cent of our fund, and we believe that our investors prefer that we place the majority of our available capital in our best ideas. It is difficult to outperform the market over time without concentration. It is up to each investor to decide what the right number of stocks is for their portfolio however I believe many investors over diversify and own too many stocks.