The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has gone nowhere in the past three months, actually falling 0.9%.
These three speculative technology companies have seen their share prices more than double. Here’s our view.
Big Un Ltd (ASX: BIG) has seen its share price rise more than 200% in the past three months, and is up more than 1,272% in the previous 12 months as we noted last week. I won’t repeat the details here, but a summary is that Big Un is generating astonishing growth in revenues, average revenue per user and subscribers.
The company makes promotional videos for many businesses allowing them to promote themselves online via video content. That appears to be a rising ad market – much like outdoor advertising, so it’s easy to see why Big Un’s share price is soaring.
The Buddy Platform Ltd (ASX: BUD) share price has gained 159% in three months to trade at 14 cents. The company offers a number of products that give businesses the ability to track and monitor resource spending such as electricity, water and solar power generation. It can gather information from various Internet of Things devices and bring them all together on one platform, which should make it easier for companies to monitor resources.
As more businesses and governments turn to smarter resources to improve efficiency, Buddy should see more sales, but investors should be aware that this is still a highly speculative, unprofitable stock.
Topbetta Holdings Ltd (ASX: TBH) has seen its share price rise 140% since April 2017. The company has its own wagering and betting platform as well as a fantasy wagering system that allows sports fans to compete online against each other via online tournaments. It’s a huge, growing industry and Topbetta continues to increase turnover and revenues each quarter at astonishing rates. The June quarter saw revenue jump 114% compared to the March quarter, no wonder the share price is soaring.
Topbetta has flagged gaining licence approval in the UK and US as two of its priorities in the next 12 months, aiming for $150 million in turnover. For investors not adverse to investing in gambling companies, Topbetta might be worth a flutter.
While these businesses might be suitable for a small speculative part of your portfolio, investors should note that the share prices of unprofitable companies can be highly volatile – Buddy Platform Ltd lost 46% of its value between its IPO price and August 2016.
You probably don’t know this market leader, but it’s making waves in Asia and already boasts a term-deposit-crushing dividend of almost 5%. A debt free balance sheet and dominant market position at home and abroad mean this company offers investors income and some real-deal growth potential.
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The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.