The technology sector of global markets seem to weather the volatility caused by changing policies and once reliable philosophies becoming disrupted in larger markets better than most sectors. However, despite all the rhetoric and many accusations in today’s media, business moves forward as usual. Besides a hunch business often looks at past performance criteria, expected performance criteria, research and possible development.
To get by with the times, Canada developed a 15-year global framework called Sustainable Development. Within this framework, Canadian technology with policies that help push their firm to world leadership or clean technologies are given government help and support. One such example is the announcement of a $26.3-million investment in clean technology back in May 2018. The companies D-Wave Systems Inc., Ionomr Innovations Inc., MineSense Technologies Ltd. and Meg Energy Corporation benefited from that government investment.
So, in essence, any company with suppliers and associates will benefit as well. And as Canada propels itself to better global market positions, discovery of these supplies can often lead to the discovery of good stocks to purchase. For investors diversifying stock portfolios, this is great news, as it makes it easier to pick a set that will most likely give positive returns during the long term.
Associates of Sustainable Development tech firms
It takes some investigation and a watch on the TSX Technology stocks to find out who associates with who and why. What do the winners of the sustainable development grant do, to begin with?
First off is Burnaby-based D-Wave Systems, which has NASA Ames Research Association as a fan buying its semi-quantum computers, as well as Google and Universities Space Research Association. Quantum computers need transistors, software, AI algorithms, mechanisms for creating an electrical current for qubits, cooling mechanisms to keep the qubits cold, circuits and chips. Precious metals such as gold on alumina are also used to help create barriers to resistance. Creating a new platform that will change the world’s ways of working and doing business also means creating the supply chains that fuel that innovation.
Then there’s Ionomr Innovations Inc., which makes an anion exchange membrane. A lab to market venture, it creates customized catalyst-coated membranes for devices, a technology that companies that do water treatment, energy storage or clean energy generation can benefit from.
There’s also MineSense Technologies Inc., which took mining into the digital age with data analysis. It uses data to determine logistics, best usage, and most profitable ways to process ore, using an algorithm created for each mining ore and location. It takes a set of sensors composed of controllers, external memory, power sources and the sensor piece itself. It takes knowledge of where to place such apparatus for maximum usage. As a result, the company operates on a much cheaper and much more cost effective way, miles away from the usual cleaning up of the tailings or pollution mines that normally gets left behind.
It’s clear that these three companies will rise and have long-term possibilities in the markets. An array of companies from startups to well-established firms that can partner with the Sustainable Development picks will have the best shot at fully developing their potentials as well. Highly technical with specific knowledge in the field expertise would help investors determine which companies to invest in. What’s more, several of these companies have attachments to universities who continue to experiment with the technology becoming commercialized.
A look back at the TSX stock classifications shows many of these firms have a track that possibly could become global. It will take making strategic partnerships, understanding the future paths being supported to gain the number of investors needed to make it profitable.
In any case, it’s good to understand that sometimes disruption does not happen because of chaos or corruption. Oftentimes, the best disruptions come from new technology showing a better way to do things.