The Information Technology sector could be offering up some opportunities for investors right now with a number of stocks including some recently floated businesses available at what could be appealing prices if the companies can achieve the high implied growth rates.
3P Learning Ltd (ASX: TPN) is a provider of e-resource learning including the popular Mathletics and Spellodrome offerings. The company has just raised funds at $2.50 per share but the stock has traded lower since listing and is currently selling at $2.21. Investors who missed out on the IPO now have the opportunity to purchase on market at lower prices, however investors would need to have confidence that 3P will achieve high growth rates given that the stock is very richly priced.
Freelancer Ltd (ASX: FLN) has still been a resounding success for IPO investors however for on-market investors the returns have been poor with the stock losing 43% since first trading. This may not concern long-term buyers of the stock, as no doubt they have a distant prize in mind and take comfort from the huge growth fellow online employment operator SEEK Limited (ASX: SEK) has produced.
XERO FPO NZ (ASX: XRO) is practically a household name around tech investors these days thanks to the massive growth in customer numbers and correspondingly its share price over the past few years. Xero offers a cloud-based accounting software package which competes with the likes of more entrenched, established peers such as Reckon Limited (ASX: RKN). Xero's share price has fallen 35% in the past six months, which could present a good entry point for growth investors who are comfortable with the risk of a business which is yet to make a profit.
Genworth Group Ltd (ASX: GTK) offers a range of specialised software solutions to large utility clients such as energy and water retailers and large infrastructure clients such as airports. Gentrack recently issued stock at $2.19. While the share price has traded higher post-IPO, the current price looks reasonable considering the profits this business is generating.
