Reboot: Which ASX small cap tech stocks are taking off?
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Stockhead’s fortnightly wrap of all the news driving ASX small cap tech stocks.
You name it, crypto, semiconductors, social media for kids, buy now pay later stocks, the tech sector has it. But there is a big gap between the best and worst performers.
In 2019, of the stocks that have been listed for 12 months, 44 have gained, 3 are unchanged and 107 have lost ground. Of the 10 stocks that have joined the list only four have gained ground, and two of these are buy now pay later stocks.
Splitit (ASX:SPT) surged as high as $2 before retreating to 42.5c. But it is still more than double its IPO. Sezzle (ASX:SZL) has also retreated from its all-time high but is still nearly 50 per cent higher than its IPO.
The other stocks are education and HR software provider ReadyTech (ASX:RDY) and track and trade (utilising blockchain) company Security Matters (ASX:SMX). These have gained 15 per cent and 100 per cent respectively since their entry onto the ASX.
When one thinks of tech successes from this part of the world, Xero (ASX:XRO) is practically synonymous. Since it entered the ASX (initially dual listed on the NZX but left last year) it has gained over 1,200 per cent from $4.65 to $62.55.
In a similar spirit, the best 12-month performer in the small cap space has been accounts receivable solution IODM (ASX:IOD) which was below 2c a year ago but now is nearly 7c.
Ironically enough investors were concerned then about the very problem it existed to fix – bad debts; but client wins and international expansion has pushed the stock upwards.
The runner up was Netlinkz (ASX:NET). Its virtual networking technology allows people to connect over the internet invisibly and without fear of network failure. It has surged through substantial revenue rises and the success of a pilot program in China leading to a commercialisation path.
Smart car tech stock Connexion Telematics (ASX:CXZ) was third, having gained 280 per cent in 12 months.
Earnings season has led to several stocks jumping such as EML Payments (ASX:EML), Reckon (ASX:RKN) and ReadyTech (ASX:RDY).
But last fortnight’s biggest gainer was TV2U (ASX:TV2). Despite its name, it is firmly in the streaming game and it recently provided a company update.
By the end of August it aims for 500 movies on its platform, 1,000 by the end of September and 3,000 by the end of March 2020. It has a particular focus on developing countries, particularly in Africa and Indonesia.
The next several stocks had no news, but the next one with news was CCP Technologies (ASX:CCP) which got out of a token-issuing deal which ended up well below expectations.
Here’s how ASX small cap tech stocks have performed in the past fortnight and year:
Swipe or scroll to reveal the full table. Click headings to sort