Due to the pandemic and the rise of tech stocks, I am on the lookout for the best ones. Accesso Technology (LSE:ACSO) could be in for a lucrative and exciting 2022. Should I buy shares for my portfolio at current levels?
Rise in demand
Accesso is a technology firm based in the UK. It provides queue management, ticketing, point of sale, virtual queuing, and guest management software solutions to over 1,000 venues globally. Accesso’s core customers include public attractions, theme parks, and many travel and tourism related businesses.
Due to the pandemic, demand for technology has risen. This should set Accesso in good stead to capitalise on this rise in demand and boost performance in 2022 and beyond.
As I write, Accesso shares are trading for 788p per share. This time last year, shares were trading for 445p, which is a 77% increase in 12 months. Many tech stocks have seen shares rise in the past year.
Positives
Firstly, Accesso announced a lucrative three-year partnership with Sensei Technologies in December. Sensei has a huge presence in Japan and will drive marketing and sales activities. Accesso will keep control over products, maintenance, and client management, however. This partnership could be an excellent move in my opinion. Accesso has been looking to make strides in the Far East market and this partnership will enable that.
In addition to the agreement with Sensei, Accesso also agreed a deal to partner up with Canadian amusements firm Calaway, which it announced in November last year. Calaway is one of the biggest amusement businesses in Canada and this partnership will also provide Access with a new revenue stream and boost its profile in North America.
Next, Accesso has reported trading has been positive recently and I expect as the world attempts to continue to reopen, this upward trend will continue. An interim report released in September saw revenue, profit, net cash, and earnings per share all rise compared to 2020 levels. Most of these also reached or surpassed 2019 pre-pandemic levels which was pleasing to see. 2020 progress was hampered by the height of the pandemic.
Finally, many insiders own Accesso shares, which I usually like to hear. Who better to know if a firm is on the right track to succeed, and if these insiders are willing to invest their own money, then I feel better about buying shares for my own portfolio too.
Tech stocks have risks
The pandemic is still a major problem for the travel, tourism, attractions, and amusement segments of the economy. New variants and varying restrictions across the world can affect operations for these types of venues. Revenue, performance, and growth could be affected for Accesso. Furthermore, competition in the technology sector is intense. Accesso may provide a set of solutions vital to the new world but there are larger established tech firms that could enter the market and affect Accesso’s progress.
Overall, I like Accesso as a tech stock. I believe its products and services are a vital component to the world we live in now and I don’t see things going back to the way they were in terms of queuing and point of sale. I think 2022 could be a great year for Accesso. At current levels, I would buy the shares for my portfolio.