Voice over IP is steadily replacing fixed lines at a staggering rate and is even making serious inroads into what was once cellular networks’ market share. In the US alone, VOIP has grown from 12% in 2010 to an estimated 32% of the telecommunications market in 2015 dwarfing fixed landlines (16%) and giving cell phone networks (52%) a run for their money.
CounterPath (
TSX: CCV,
Stock Forum) is one of many VOIP solution providers hoping to cash in on this rapidly expanding sector.
The company, who provides desktop and mobile VoIP software solutions, hasn’t posted a profit in the last five years and management continues to assure shareholders that
CounterPath is on a path of growth and alignment to major market trends. The company used its key agreement with
Roger’s Communications, Canada’s largest wireless operator, to extend the company’s powered OTT service to include CounterPath’s tablet and mobile softphones as a demonstration of its ability to support Tier 1 wireless carriers through multiple product launches. All of this sounds good, but the sector is starting to mature somewhat and
CounterPath really needs to throw in over the next 18 months to truly achieve its profitability goals, otherwise it will become an “also-ran” in danger of getting knocked out by other more aggressive first movers.
Enghouse Systems (
TSX: ESL,
Stock Forum) came in at a
52-week high today of $38.25 on a yearlong relatively steady upward trend in SP. This company continues to perform as an enterprise software solutions provider in communications, networking and transportation and continues to make key accretive acquisitions conducted by a formidable management team. Like I said before, the product may not have the sexiness of other technological offerings, but the company’s direction and business sense make it pretty luscious for traders interested in going long.
Sierra Wireless (
TSX: SW,
Stock Forum) provides
M2M solutions for enterprise clients and although the stock has seen some relative ups and downs, it has gradually pushed northward and today SP continued to hit a 52-week high of $33.05 per share. Consistent strong deals and smart acquisitions helped Sierra to achieve
record revenues in Q4 2013 of $118.6 million. They continued that trend by reporting record revenues once again in Q2 2014 of $135.0 million, up 23% from the matching 2013 quarter.
On top of financial performance, the company also announced hitting an incredible milestone of shipping its 100
th million connected device on more than 80 networks worldwide since it broke new ground and developed the world’s first embedded cellular module in 1997. This first mover is moving fast and in the right direction.
While we’re on the topic of
52-week highs,
OpenText (
TSX: OTC,
Stock Forum), hit it once again with
today’s SP of $64.02. Enterprise Information Management (EIM) is becoming increasingly important as data builds and companies struggle to process and act on the sea of information now available to them.
The company was founded back in 1991, before the web was born and helped companies weed through their digital data with the OpenText 4 search engine. The company used its foresight and set out to monopolize on the inherent power of the Internet and by the time 1996 rolled around, it managed to raise US$61.0 million through its IPO. Ever since, the company has steadily grown its portfolio and adapted to ever-evolving technologies, providing cloud-based services and, more recently, a
new Digital Asset Management solution, Media Management 7.2, to help clients securely send and receive massive media files up to 80 times faster than conventional methods – a key advance in today’s media-centric marketing economy. Another investment option for the blue chip trader.
Just a quick note,
Twitter (
NYSE: TWTR,
Stock Forum) announced today that it intended to
raise $1.8 billion through a convertible debt offering which pretty much matches what the company was able to raise in its IPO last November. As the company has yet to hit regular profits, it is most likely trying to play catch-up with deep-pocket social media sector entities as Facebook in the ongoing frenzied acquisition game. Social media is evolving, yes, but I think this is yet another tech bubble that, perhaps in the next two years, will pop when investors see through all the ridiculous app releases and network add-ons to finally stand up and scream that the
emperor isn’t wearing any clothes. That is of course, my opinion, but people are still buying into Apple’s tired game, so maybe this will go unchecked forever…God help us.
Here is a summary of Tech on the TSX:
| Symbol (Name) |
Cost/Share |
Last |
Change |
% Change |
| V.FLY |
0.67 |
0.490 |
+0.065 |
+15.29% |
| T.ESP |
2.89 |
2.750 |
+0.150 |
+5.77% |
| V.ANY |
7.14 |
7.400 |
+0.310 |
+4.37% |
| T.DBO |
0.265 |
0.240 |
+0.010 |
+4.35% |
| T.RKN |
5.23 |
3.720 |
+0.070 |
+1.92% |
| T.PUR |
7.86 |
8.140 |
+0.140 |
+1.75% |
| T.UR |
2.19 |
1.180 |
+0.020 |
+1.72% |
| T.WIN |
3.36 |
4.185 |
+0.065 |
+1.58% |
| T.AVO |
23.96 |
20.310 |
+0.310 |
+1.55% |
| T.AJX |
0.77 |
0.660 |
+0.010 |
+1.54% |
| T.SMA |
2.60 |
1.980 |
+0.030 |
+1.54% |
| T.HMM.A |
1.45 |
2.170 |
+0.030 |
+1.40% |
| T.OTC |
51.41 |
64.080 |
+0.870 |
+1.38% |
| T.ESL |
33.86 |
38.340 |
+0.440 |
+1.16% |
| T.CDV |
4.20 |
3.730 |
+0.040 |
+1.08% |
| T.EFL |
1.12 |
1.000 |
+0.010 |
+1.01% |
| T.NII |
0.49 |
0.500 |
+0.005 |
+1.01% |
| T.NLN |
1.00 |
1.100 |
+0.010 |
+0.92% |
| T.DSG |
15.08 |
15.480 |
+0.140 |
+0.91% |
| T.EXF |
5.01 |
4.740 |
+0.040 |
+0.85% |
| T.AXX |
2.71 |
2.410 |
+0.020 |
+0.84% |
| T.MNW |
11.59 |
11.200 |
+0.080 |
+0.72% |
| T.DHX |
4.66 |
8.130 |
+0.040 |
+0.49% |
| T.BB |
10.68 |
11.950 |
+0.040 |
+0.34% |
| T.DH |
31.01 |
33.750 |
+0.100 |
+0.30% |
| T.GIB.A |
38.03 |
39.290 |
+0.060 |
+0.15% |
| T.CLS |
12.48 |
11.970 |
+0.010 |
+0.08% |
| T.SW |
21.19 |
32.860 |
+0.020 |
+0.06% |
| C.GNR |
1.25 |
0.840 |
0.000 |
0.00% |
| T.RC |
2.71 |
2.450 |
0.000 |
0.00% |
| T.NXJ |
1.93 |
1.700 |
0.000 |
0.00% |
| T.HDX |
0.305 |
0.250 |
0.000 |
0.00% |
| T.SVC |
3.53 |
3.020 |
0.000 |
0.00% |
| T.RDL |
3.69 |
3.600 |
0.000 |
0.00% |
| T.WEW |
0.385 |
1.720 |
0.000 |
0.00% |
| T.DW |
4.70 |
3.760 |
0.000 |
0.00% |
| T.LMP |
21.01 |
19.950 |
0.000 |
0.00% |
| T.KXS |
16.20 |
16.990 |
-0.010 |
-0.06% |
| T.MDA |
83.81 |
84.500 |
-0.310 |
-0.37% |
| T.CSU |
261.00 |
272.070 |
-1.430 |
-0.52% |
| T.DWI |
2.13 |
1.470 |
-0.010 |
-0.68% |
| T.CCV |
1.45 |
1.120 |
-0.010 |
-0.88% |
| T.ET |
17.20 |
16.820 |
-0.210 |
-1.23% |
| V.SEV |
0.42 |
0.345 |
-0.005 |
-1.43% |
| V.SY |
0.38 |
0.275 |
-0.005 |
-1.79% |
| T.CMG |
14.63 |
11.980 |
-0.340 |
-2.76% |
| V.SYD |
0.37 |
0.250 |
-0.010 |
-3.85% |
| V.SIO |
0.15 |
0.240 |
-0.010 |
-4.00% |
| V.TNG |
0.165 |
0.095 |
-0.005 |
-5.00% |
| V.PKK |
0.055 |
0.030 |
-0.005 |
-14.29% |