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TSE:STC

Sangoma Technologies Corp. (STC.TO)

5.06
+0.02 (0.40%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
139 watching
0
HOLD
A growth by acquisition story. He sold in the Q4, though he wishes he still owned it. There's no big catalyst for this stock, but it will continue to perform.
BUY
They do a fair business in Asia in telephony. It's expected to grow in June 2020 from 7 to 9 cents, then 14 cents in June 2021. Good earnings growth. Boasts 8.5% free cash flow which is high for a tech stock, so they can buyback stock or raise the dividend. Analysts see 20% upside.
TOP PICK
They do unified communications (phone systems within a business), serving small/medium-sized companies. STC boasts a high 10% organic growth rate. Managers have acquired businesses well in recent years. STC itself is a prime take-out candidate by a bigger peer; if not, then STC will be a multi-year compunder. (Analysts’ price target is $2.99)
BUY

A company that specializes in telephone equipment for companies. They are expected to grow earnings by 12%. The PE is at 10 and he likes the stock. (Analysts’ price target is $2.99)

BUY
A big holding of his in a moderate-growth business. They just made a big acquisition and they grow by acquiring. It is a low-multiple stock and likely will stay low. They execute well.
BUY
He screened them from a financial metrics stand point. They seem undervalued. With these smaller companies they go through consolidation and then jump higher and repeat. They are too small for him. It is a nice little company. You have to be careful with position size.
COMMENT
Earnings estimates are $0.11 per share making this trading around 14 times earnings. Their recent acquisition has been successful and he believes there is more upside to come. (Analysts’ price target is $2.50)
BUY
They are internet phone protocol specialists. They have a 40 times PE, but the 2020 PE is estimated at 12 times. Technically it recently broke through resistance near $12. Great technology and cheap stock and he thinks it is getting traction.
PAST TOP PICK
(A Top Pick Sep 10/18, Up 24%) Reported a great quarter. An unloved company. Expects numbers will continue to improve.
PAST TOP PICK
(A Top Pick Jan 22/18, Up 14%) Have excess cash flow to buy other companies. STC itself is very small, so keep that in mind. He likes them. He hopes they breakabove $1.40. They've been going sideways lately, but are well-run.
HOLD
They produce hardware and software for internet phone systems. He expects them to make $0.08 per share in earnings over the next year or so -- an implied 15 times PE ratio. He sees good opportunities for them going forward.
BUY

A past top pick. They appear cheap in forward guidance. He still likes it and thinks it could move higher. They're serial acquirers and do a good job of intergrating companies.

TOP PICK

It is a very small story. They are involved in telephony and telephony products. He thinks the street has the story a little bit wrong. They basically doubled the size of the company. (Analysts’ target: $2.22).

COMMENT

It's not part of his database. Earnings appear to be attractive. End of year (June 2018) is expected to earn 7 cents, expecting to grow to 9 cents in June 2019. 14x PE and 30% earnings growth. Stock is rising. Little analyst coverage on this.

BUY

He owns it personally. The return on equity meets his criteria. It is relatively inexpensive. They have been growing by acquisitions. They have a steady business and then juice it by acquiring companies with the cash flow. It was a Top Pick of his previously. It is a reasonable level to initiate or to add to a position.

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