Canada markets closed
  • S&P/TSX

    19,351.32
    +29.42 (+0.15%)
     
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • DOW

    34,200.67
    +164.67 (+0.48%)
     
  • CAD/USD

    0.7999
    +0.0023 (+0.29%)
     
  • CRUDE OIL

    63.07
    -0.39 (-0.61%)
     
  • BTC-CAD

    68,958.70
    -7,799.35 (-10.16%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • GOLD FUTURES

    1,777.30
    +10.50 (+0.59%)
     
  • RUSSELL 2000

    2,262.67
    +5.60 (+0.25%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • NASDAQ

    14,052.34
    +13.54 (+0.10%)
     
  • VOLATILITY

    16.25
    -0.32 (-1.93%)
     
  • FTSE

    7,019.53
    +36.03 (+0.52%)
     
  • NIKKEI 225

    29,683.37
    +40.67 (+0.14%)
     
  • CAD/EUR

    0.6670
    +0.0012 (+0.18%)
     

Buy Alert: 2 Tiny TSX Tech Stocks Gaining Major Momentum!

  • Oops!
    Something went wrong.
    Please try again later.
Daniel Da Costa
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
analyze data
analyze data

Growth stocks have seen a lot of momentum lately, especially tech stocks with a tonne of potential. Even high-quality micro-cap tech stocks are starting to see strong momentum.

This is creating a major opportunity for investors who own the high-quality tech stocks that are seeing the momentum.

While I don’t believe you should ever speculate or gamble with your hard-earned money, sometimes top long-term stocks can benefit from irrational behaviour in markets.

The two tiny tech stocks today are both companies I’ve recommended before to long-term investors.

Recently it looks as though these stocks may be gaining some momentum from speculative buyers, meaning the chance to buy the stocks may soon be evaporating.

So without further ado, here are two TSX tech stocks that may not be cheap for much longer.

Drone delivery tech stock

The first stock you may want to buy before it’s too late is Drone Delivery Canada Corp (TSXV:FLT). The small $150 million stock has been in business for seven years.

Over that time, it’s made a tonne of progress and is now on the cusp of launching its operations commercially.

Most recently, it’s been working with pilot partners to refine the final aspects of its business before launching for good. And what’s the most attractive about Drone Delivery is that the company thinks its services can be helpful in several different industries.

Of course, there is always risk with a business this early on, but the fact that it’s still a micro-cap stock is a little surprising.

It has been gaining momentum in recent weeks, however, so this might finally be the moment that long-term investors have been waiting for.

And because several investors tend to avoid tiny tech stocks stocks, the company could get a lot more coverage as its share price increases, only adding to the momentum.

Sports media stock

The other tech stock that is trading right around its 52-week high is Score Media and Gaming Inc (TSX:SCR). Score is a sports media company that has ventured into the sports gambling business.

For years the company has had one of the most popular mobile apps providing news, scores, standings, and more for sports fanatics. Recently, though, Score has decided to try to leverage this massive user base and build-out its betting platform. This has a tonne of potential, which is why investors have been watching the stock so closely.

This year some of that growth potential has been sidelined with the coronavirus pandemic and its impact on sports. However, as sports have returned and we are slowly progressing toward a return to normalcy, it makes sense investors have turned their attention back to tiny tech stocks like Score.

Plus, the stock got some positive news when the Canadian government announced it intends to legalize sports betting in Canada. This is a significant development for Score as another major market legalizes sports betting, only increasing the potential the company has.

Plus, it has a significant competitive advantage with its massive user base. In the last four days, the stock is up 40%. So while you may want to wait for a pullback, doing so could cause you to miss out on the stock altogether.

Bottom line

Finding stocks with major momentum can be extremely rewarding. That said, you should never make impulsive decisions or try to speculate with investments.

These two tiny tech stocks are ideal because they are great long-term investments. It just happens to be a bonus that they now seem to have significant momentum.

The post Buy Alert: 2 Tiny TSX Tech Stocks Gaining Major Momentum! appeared first on The Motley Fool Canada.

More reading

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2020