Money Talks: Are these 3 ASX tech stocks the next big things?
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Money Talks, is Stockhead’s regular drill down into the ASX stocks experts are looking at right now.
Today, we hear from Surrey Asset Management, a director & portfolio manager Nick Maclean.
Surrey Asset Management has had a good run in the last 12 months returning 17 per cent. Its benchmark index (the Small Ordinaries Accumulation Index) returned just 11 per cent.
Surrey has benefited from several of its investments including a number of tech stocks. There are a handful of large caps and several dozen smaller caps in the sector hoping to be the next big thing.
Earlier this week Stockhead published the first part of our interview with Maclean in which he told Stockhead he was a fan of three large cap tech stocks. He also gave a few more picks in the tech sector that remain small caps – for now.
Surrey bought into the residential community-focused telco at its IPO last year. Back then it was $2 per share and it’s now over $6. Surrey continues to hold.
Opticomm is currently being taken over by its peer Uniti Group (ASX:UWL) in a deal that will see OptiComm shareholders get some shares in Uniti as part of the package.
“We’re very happy with it rolling into Uniti,” Maclean said.
“We think there’ll be some strong synergies out of the combined business and look forward very much to seeing how they’ll grow that over the next 12 months.”
This stock makes wearable analytical devices for athletes and has several high profile clients worldwide.
While Catapult’s management team is new, Maclean thinks this tech stock will re-rate as it shifts to a SaaS model.
“Whether you like the valuation or not, their technology is world-leading,” he said.
“They’ve got a huge number of sporting clubs across the world using their product and we think new management team will monetise that and ideally lead to a re-rate and earnings growth.”
The buy now pay later has grown exponentially over the last several years and Sezzle has been no exception.
The Minneapolis-headquartered company listed at $1.21 in July last year and is now over $6.80.
While it only US-focused right now, Surrey has been pleased with its growth and has continued to hold.
“We like the management, we think they’re well capitalised, they’re growing at an extremely rapid rate,” Maclean said.
“The valuation is getting up there, [it’s] by no means a cheap investment but we think with the growth rates we’ve forecast we like that story as well.”