In my opinion, you don't have to invest in U.S. or European shares to make big investment returns in the technology sector.
Sure, you won't find a big smartphone maker, search engine or social media owner on Australia's ASX. However, you will find technological innovation. You just need to work a little harder to unearth the hidden opportunities.
4 hot ASX tech stocks you've never heard of
Okay, the first hot tech stock you may know. XERO FPO NZX (ASX: XRO) is the fast-growing cloud accounting software provider. Xero took advantage of the lack of innovation in accounting technology to transform how small businesses, accountants, bookkeepers and payroll teams approach their roles.
Class Ltd (ASX: CL1) is another play on cloud accounting and financial software. Class works in the rapidly growing market of self managed superannuation funds (SMSFs). Anyone who operates their own large SMSF has two options: pay bucket loads of cash for administrators and accountants, or spend hours crunching all the numbers yourself. Class's software brings enormous efficiencies for both of these customers.
Praemium Ltd (ASX: PPS) is another play on wealth management. The $172 million company has growing operations in Australia and the United Kingdom. Praemium provides portfolio and investment administration services for rapidly growing market segments such as Separately Managed Accounts (SMAs). SMAs are rapidly growing in popularity and I suspect companies like Praemium and Hub24 Ltd (ASX: HUB) will be able to profitably capitalise on the trend.
Finally, Catapult Group International Ltd (ASX: CAT) develops sports analytics devices for professional teams across the globe. Catapult's technology is used by coaches and sports development coordinators to monitor game strategy, injury and player performance. In my opinion, there is potential for rapid growth but an investment in this $400 million company should be considered high-risk high-reward.
Buy, Hold or Sell
In my opinion, you shouldn't waste any time picking speculative concept stocks for your portfolio when you can find quality growth businesses such as those listed above. Of these companies, I think Class is a quality (mind the pun) business and worthy of closer inspection.
