Canada is an interesting place to invest, from a global perspective, for a number of reasons. Perhaps one of the more fascinating aspects of the Canadian investment landscape to me is the weighting of various sectors. Many know how important energy and utilities are, in terms of sector size, to the Canadian economy, and much of the coverage of Canadian stocks tends to centre on "hard" sectors only. While Canada’s tech sector is relatively small, however, there are a few good investable companies out there today, and I’m going to focus on one of the best (in my opinion) in this article.
OpenText (TSX:OTEX) is a Canadian company in the software space which has been absolutely killing it in recent years. I would direct the attention of the reader to any stock chart, for any length of time, to OpenText. This software company continues to have excellent fundamentals, and is one of the few rare technology growth plays on the TSX that has panned out in recent years (only Shopify Inc (TSX:SHOP)(NYSE:SHOP) comes to mind as a true comparable from this perspective).
OpenText has recently undertaken a very compelling acquisition of a cloud-based subscription backup business, one which many analysts believe will be able to drive profitability over the long-term. The company’s cloud business has grown on a compounded annual growth rate (CAGR) basis at a 30% a year clip for the past eight years- a truly remarkable feat. The company has recently issued debt at a very low rate, and is expected to continue to grow explosively over time, making this a Canadian tech favourite of mine.
Invest wisely, my friends.
