Many tech stocks have come under pressure in recent months. This is due to macroeconomic and geopolitical factors and investors moving towards safer defensive options. So should I add FTSE AIM stock Accesso Technology (LSE:ACSO) to my holdings? Let’s take a closer look.
Tech stock
Accesso is a tech business based in the UK providing virtual queue management, ticketing, point of sale and guest management software for many venues and businesses across the world. Its most prominent customers include public attractions, theme parks and other tourist hotspots.
So what’s happening with the Accesso share price currently? Well, as I write, the shares are trading at 662p. They look like they’ve hardly budged in a year as 12 months ago they were at 660p. But the stock had actually been higher, and it has dropped 22% since the end of March.
To buy or not to buy?
So what are the pros and cons of me buying this stock?
FOR: Accesso has a good performance track record. I understand past performance is no guarantee of the future, however. Discounting 2020 results, as the tourism sector was hurt by the pandemic, Accesso has been able to grow revenue and profit in recent years. This is encouraging and I only see this rising as the world continues to reopen. Pent-up post-pandemic demand could also boost its results in the future.
AGAINST: It’s a business with a big presence, however in the tech space it’s not exactly a household name. My concern here is that if a better known tech firm with more financial muscle and presence entered this lucrative market, Accesso could be pushed aside causing the stock to lose market share.
FOR: The company has been making positive moves to increase its market share, profile and presence in recent years. Deals with Japanese and Canadian tourism businesses to manage their services have given it access to previously untapped territories. This should boost performance and any returns I hope to make.
AGAINST: Accesso saw many of its operations disrupted due to the pandemic. The global health crisis meant the businesses it serves were hit hard and that fiscal year its financials took a hit. Covid-19 hasn’t disappeared. In fact, certain countries have seen temporary restrictions to curb rising levels of infection. There’s still a risk that the pandemic and virus could impact operations and performance.
An AIM stock I’d buy
Accesso shares look attractive to me and good value for money on a price-to-earnings ratio of close to 15. The general market for its solutions seems to be on the rise and pent up demand has played a big part in this.
It has done well recently in signing up new partners to increase its presence and profile globally.
One of the key points that stands out to me is that many Accesso insiders own shares. This is a huge positive. If those charged with running the business are willing to part with their cash, then maybe I should too. After all, who better understands if further success is ahead than those in charge? Right now I’m tempted to buy Accesso shares.
