Topic: How To Invest

Tucows has been a hot stock in the past year. What is your opinion of this company? Is it a buy or a sell?

Article Excerpt

Tucows, $38.60, symbol TC on Toronto (Shares outstanding: 11.0 million; Market cap: $404.8 million; www.tucows.com), provides network access, domain names and other Internet services, such as email hosting, through its OpenSRS division. OpenSRS manages over 14 million domain names, while the company’s Ting subsidiary offers mobile phone service to individuals and small businesses. In the three months ended March 31, 2015, Tucows’ revenue rose 17.6%, to $40.5 million from $34.4 million a year earlier (all figures except share price in U.S. dollars). Earnings per share jumped to $0.25 from $0.04. Tucows holds cash of $13.7 million, or $1.37 a share, and has no long-term debt. Since May 2015, the company’s shares have jumped from just over $20 to today’s price. That’s likely because of GoDaddy’s (symbol GDDY on New York) successful initial public offering on April 1, 2015, and subsequent price jump in May. Like Tucows, GoDaddy registers domain names and offers hosting services. Tucows trades at a high 33.6 times this…