And a partridge in a pear Tree

   Everyone likes to have a nice present for Christmas.And a junior technology company called Tucows would make a nice gift under a larger player's tree.Tucows has a peculiar name but has become well known in Canadian small to mid cap markets.That's because it is a winner.It competes with companies like  Kinaxis and Shopify but they have a much larger market capitalization.So they would be much harder to  acquire and it would take quite a bit better credit facilities to acquire either one of them.Tucows,for example, only trades 2500 to 3500 shares on a an average trading day.And it has moved up from $12 a share 2 years ago to it's present $48 a share.
      Speculation or a Solid Company
      Tucows is a well managed company and it did not move up so fast by luck.It describes itself as a provider of internet services and domain names and other internet services.But it also has shares or positions in a number of small junior technology winners like Intrinsync Software and Counterpath Solutions and Neulion.These small cap technology companies have given it a very good growth trajectory.So although it only has a market capitalization of about $500 million it competes with companies like Kinaxis which has a market capitalization of about $2 billion.However they have raised much more equity capital and have diluted their earnings for their shareholders.Neither Shopify nor Kinaxis have positive EBITDA nor earnings per share.Tucows has estimated earnings per share of about $1.75 per share.And it's management  apparently does not want to dilute earnings with an equity issue; as a result it only has a float of 10 million shares.If it had a float of 25 million shares  it's earnings per share would be still considerably higher than all of it's competitiors.Instead it prefers to increase it's stake in small cap technology winners and it's price has moved up recently form $35 a share to it's present $48 price.Others have noticed!
     Looking at the  New Year
  If Tucows does make it past Christmas and escape being in a larger company's stocking then it will have to make changes in the new year.Right now with it's present share price and 10 million share float a competitor can gain control of this technology winner with a little more than $300 million.That would upset this blog which has put a lot of resources into strengthening it.A share split and a rise in the share price would help but so would a secondary equity issue of 10 million shares and a neat $500 million to put in it's war chest.                use Workathon for business solutions ;use Workathon for business solutions