Technologies (TSXV: STC), a three-peat Top Pick performer, Questor Technology
(TSXV: QST) and Quorum Information Technologies (TSXV: QIS) join Avante Logixx
(TSXV: XX) as small cap stocks that have the potential for good returns next
Nine years and counting, the Investorfile blog
continues with its annual tradition, whereby, in December, we comprise a Top
Pick list. To do that, we become a predictor of a few investment themes for our
current list of Top Ideas that may have a positive impact on the stock price as
a "percentage gainer” for the New Year. While we do not advocate a short-term
investing focus for generating investment gains, over the years we have had
some success with our annual Top Picks. We want to emphasize that this list
does not preclude the potential for any of Investorfile’s Top Ideas to become a
top performer stock in 2020, too.
This year Investorfile has four stocks
that make our Top Pick list rather three stocks as in most previous years. This
is due to our high conviction for each pick and their ability to continue to
generate investment gains in the upcoming year.
Investorfile predictions for 2020:
1. Our Top Ideas stock that could see its
revenue multiple expand significantly.
Prediction is: Avante Logixx Inc. (TSXV: XX- C$1.51)
Avante Logixx Inc
provides best-in-class and high-end residential and commercial security
services across Canada.
The Company has four distinct operating divisions: Protective Services,
Electronic Security, Security Devices & Hardware and Monitoring &
Through acquisitions and organic growth, Avante Logixx
has grown significantly over the past 18 months. With the integration of its
most recent acquisition (A.S.A.P Secured Inc.) the Company has a 12-month revenue run rate of
approximately C$70 million. At the moment, the stock of Avante Logixx (on a
fully-diluted basis) trades at a valuation equal to 60% of its annual revenues. We
think there will be re-rating of this revenue trading multiple and, therefore,
it will expand to at least one times annual revenues, equivalent to about
C$2.60 per share (based on its current capital structure) as the Company continues
to report stronger EBITDA.
Investorfile blog post (Sept. 2019):
Time to accumulate stock in Avante Logixx again
Top Ideas stock that should see a continuation of its trading momentum.
Prediction is: Sangoma Technologies (TSXV: STC- C$2.49)
Sangoma Technologies delivers Unified
Communications solutions for SMBs, Enterprises, OEMs, Carriers and service
providers. The Company’s scalable offerings include both on-premises and
cloud-based phone systems.
This is the third year in row that Sangoma
Technologies has appeared on Investorfile’s annual Top Pick list and the stock
continues to perform. The shares are up another 85% in value from last year. The Company is experiencing good growth, both organic and
through acquisitions, which has driven its market capitalization to over C$180
million. We think Sangoma Technologies will continue to grow in 2020 and
make more acquisitions. This will attract more
institutional investors and continue to build the trading momentum for the stock.
Last Investorfile blog post (Feb. 2019):
Technologies could be a $2.50 stock this year
3. Our Top Ideas stock whose share price will
reclaim its all-time highs.
Prediction is: Questor Technology (TSXV: QST- C$4.31)
Technology Inc. is a leading provider of waste gas combustion incineration
solutions to improve air quality. The Company's proprietary incinerator
technology--which is safe, reliable and very
efficient--is deemed a best-of-breed clean-air solution for oil and
gas producers needing to comply with stricter emission regulations now being
In 2018, the Company had its highest yearly revenue and
earnings in history. This year, Questor is expected to exceed those financial
results. We believe that in 2020, the Company will report even more significant
growth in both revenues and earnings as Questor continues to diversify its
customer base by operating in more States within the USA and internationally.
As such, the Company stock price should reclaim and surpass its all-time
trading high of C$5.36. Six analysts currently provide research coverage on
Questor Technology, and all have "buy” and "outperform” ratings.
Last Investorfile blog post (May 2019):
Questor Technology stock passes the $5.00 mark and can still double
Top Ideas stock that will be discovered by more institutional investors.
Prediction is:Quorum Information Technologies (TSXV: QIS - C$1.05)
Information Technologies Inc. is
focused on developing, marketing, implementing and supporting its portfolio of
software and service solutions for automotive dealerships. The Company says its
vision is to build a single, integrated, end-to-end business process solution
for North American automotive dealerships that covers all of their
Over the past 12 months, Quorum
Information Technologies has transformed itself into a much bigger company
through acquisitions and organic growth. Today Quorum has a very large
recurring revenue base and is growing profits. This trend will engage more
institutional investors and analysts to this story, which should continue to
have a positive impact on the valuation of the Company’s shares.
Last Investorfile blog post (June 2019):
Large recurring revenue base provides excellent visibility for Quorum
Information Technologies and its near-term prospects
ownership disclosure: Yes - XX, STC, QST, QIS.
This article is for informational purposes only. This article is based on the
author's independent analysis and judgment and does not guarantee the
information's accuracy or completeness. The information contained in this
article is subject to change without notice, and the author assumes no
responsibility to update the information contained in this article. The
information contained within this article should not be construed as offering
of investment advice. Those seeking direct investment advice, should consult a
qualified, registered, investment professional. This is not a direct or implied
solicitation to buy or sell securities. Readers are advised to conduct their
own due diligence prior to considering buying or selling any stock.
Investorfile.com is not engaged in an investor relations
agreement with Avante Logixx Inc., Sangoma Technologies Corp., Questor
Technology Inc. and Quorum Information Technologies Inc. nor has it received
any compensation from Avante Logixx Inc., Sangoma Technologies Corp., Questor
Technology Inc. and Quorum Information Technologies Inc. for the preparation or
distribution of this article.
The author of this article has acquired and may trade shares of Avante Logixx
Inc., Sangoma Technologies Corp., Questor Technology Inc. and Quorum
Information Technologies Inc. through open market transactions and for
investment purposes only.