iStock.com/Imilian Looking to Make Money From Tech Stocks? Read This
For investors who want to make big capital gains from the stock market, the technology sector is one of the best places to look. With so many fast-growing companies coming out of Silicon Valley over the last few decades, the tech sector has made many investors rich.
But it’s worth noting that Silicon Valley—or even the whole United States, for that matter—is not the only place to find fast-growing tech companies. That said, I want to talk to you about a lesser-known tech stock-based north of the border: Open Text Corp (NASDAQ:OTEX).
Headquartered in Waterloo, Ontario, Canada, Open Text is in the enterprise information management business. It provides a wide range of software and services, helping companies manage, leverage, secure, and gain insight into their enterprise information. Open Text can deliver its solutions both on-premise or in the cloud.
Also, while Open Text Corp is listed on the Toronto Stock Exchange, its shares also trade on the Nasdaq. Therefore, it’s very convenient for American investors to get a piece of the action; on both stock exchanges, the company’s ticker symbol is “OTEX.”
As I said, there are plenty of exciting tech stocks in the U.S., so why should American investors consider a Canadian tech stock?
Well, in my opinion, there are three main reasons.
Open Text Corp Runs a Recurring Business
The first reason to consider OTEX stock lies in the recurring nature of the company’s business. You see, a tech company could be making a hot product, but if no one wants to buy that product more than once, it would only make money from one-time sales. And that would limit the company’s growth potential.
Hardware device makers often find themselves in that situation. For instance, GoPro