4 Canadian FinTech Stocks Worth Watching
On July 3, 2019, Canopy Growth Corporation (TSX:WEED) announced that Bruce Linton is stepping down from his role as Co-CEO. In an interview with Amanda Lang on BNN Bloomberg, Linton provided his outlook for Martello Technologies (TSXV:MTLO), a company he helped found and was CEO of until 2017. Bruce Linton stated that he would like to help the Company with its capital markets and acquisitions strategy. The comments from Linton helped Martello Technologies stock experience a 100% increase in price over the past two trading session. Today, we have uncovered four Canadian FinTech stocks that could benefit from the growing investor interest in the FinTech sector.
*Share prices as at close July 4, 2019, data obtained from S&P Capital IQ
Martello Technologies Group Inc. (TSXV:MTLO) – $0.41
Martello Technologies develops products and solutions that monitor, manage and optimize the implementation of real-time application on networks, while also providing IT teams and service providers with control and visibility of the whole IT infrastructure. Currently, the Company offers SD-WAN technology, network performance management software, and IT analytics software. The Company’s product portfolio has options for subscription-based offerings, hardware product offerings and software license fees. Martello has recently highlighted its growth in the hospitality industry with its products being deployed in thousands of hotels around the world to help provide reliable high-speed Internet access. On June 11, 2019, MTLO announced its growth in the Middle East Hospitality industry with its distribution agreement with Naizak Distribution, a global IT conglomerate. Together the companies are expected to provide Martello’s enterprise network solution to more than 50 hotel properties in the Middle East.
- Market Cap: $78.4 Million
- 1 Month Return: 86.3%
- 90-Day Average Daily Volume (1,000s): 393
- 30-Day Average Daily Volume (1,000s): 912
VersaPay Corporation (TSXV:VPY) – $1.77
VersaPay is a FinTech company that focuses on developing innovative cloud-based solutions that offer invoice-to-cash solutions that allow companies to streamline financial operations. The Company focuses only on providing cloud-based invoicing, accounts receivable management and payment solutions. The Company offers VersaPay ARC, which helps with accounts receivable and collections management with a customer self-service opportunity that allows them to view invoices online, collaborate on inquiries and dispute and conduct secure online payments. On May 22, 2019, the Company announced its Q1/19 financial results, which showed that total revenue increased by 90% to $1.95M when compared to $1.03M in Q1/18. On June 5, 2019, VersaPay announced it signed an agreement with an unnamed billion-dollar drainage enterprise that will use ARC to aid its invoice-to-cash process.
- Market Cap: $77.8 Million
- 1-Month Return: 21.4%
- 90-Day Average Daily Volume (1,000s): 114
- 30-Day Average Daily Volume (1,000s): 212
Posera Ltd. (TSX:PAY) – $0.10
Posera offers hospitality technology that helps facilitate merchant transactions through its customizable solutions for restaurants, hotels and bar establishments. Posera’s products include SecureTable Pay, an EMV (Europay, Mastercard, VISA) compliant Pay-At-The-Table application, and Kitchen Display system, which helps make communications between the kitchen, front of the restaurant and back office more efficient. PAY also offers Maitre’DTM, a restaurant management system that provides a comprehensive solution that includes hardware integration services, merchant staff training, system installation services, post-sale software, and hardware customer support. On May 15, 2019, the Company announced Q1/19 financial results, which showed a decrease in revenue from $2.74M in Q1/18 to $2.01M. Despite the lower revenue, the Company did increase its recurring revenue by 4.7% to $0.8M in this quarter when compared to $0.77M in Q1/18.
- Market Cap: $12.0 Million
- 1-Month: 25.0%
- 90-Day Average Daily Volume (1,000s): 107
- 30-Day Average Daily Volume (1,000s): 150
NamSys Inc. (TSXV:CTZ) – $0.85
NamSys offers technology solutions that make cash processing more efficient. The Company aims to help retailers, cash-in-transit providers and financial institutions with its software solutions. The Company’s cloud-based products are sold under the label “Cirreon.” The products it offers include Smart Safe Monitoring, Cash-in-Transit Logistics, Deposit tracking, Online Change Orders and, Cash Vault Management. On March 20, 2019, the Company announced its Q1/19 financial results, which showed revenue of $902,410, up 21.5% from $742,488 in Q1/18.
- Market Cap: $23.2 Million
- 1-Month Return: 5.0%
- 90-Day Average Daily Volume (1,000s): 26
- 30-Day Average Daily Volume (1,000s): 36
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.