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Halogen Software can continue its torrid growth, says BMO’s Tyler Hewlett

Halogen Software
Halogen Software
With shares of the stock down for several consecutive days, recent IPO Halogen Software may be facing its first headwinds as a public company, but BMO Canadian Small Cap Equity Fund portfolio manager Tyler Hewlett says it will pass.

With shares of the stock down for several consecutive days, recent IPO Halogen Software (Halogen Software Stock Quote, Chart, News: TSX:HGN) may be facing its first headwinds as a public company, but one fund manager says it will pass.

Tyler Hewlett, Portfolio Manager, at the BMO Canadian Small Cap Equity Fund was on BNN’s Business Day today to talk about Canadian small cap ideas.

Hewlett, whose fund recently took a position in Halogen, says the story begins and ends with strong management, which has grown the company’s sales at a 30% clip, a pace the BNO fund manager thinks they can continue to meet or beat.

Hewlett says Halogen’s space, the talent management vertical, is lucrative because many of its potential clients are still using crude systems for human resource management, such as Excel spread sheets.

“This is an end market that is really virgin territory,” he says. “It’s also quickly growing, and Halogen has become a leader in the space.”

In May, Ottawa-based Halogen, which was formed in 2001, went public on the TSX, raising just over $50-million by selling 4,365,218 shares at $11.50 each. The stock closed its first day at $13.20 and surpassed the $15 mark, before a recent slump. In early June, Halogen exercised its “greenshoe” over-allotment option, issuing 720,000 additional shares at $11.50 to raise an additional $8.3-million.

At press time, shares of Halogen were down 4.2% to $13.61.

Click here for the full interview.

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About The Author /

Nick Waddell
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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