Personal Finance

Why Tucows Inc. Stock Soared in March

Two cows.

What happened

Shares of Tucows (NASDAQ: TCX) rose 12.1% in March 2017, according to data from S&P Global Market Intelligence .

So what

The provider of online business services and a budding bundle of mobile and fiber-optic communications products started March with a bang, announcing a brand-new $40 million share buyback program. For a company with a $476 million market cap at the time, that's a pretty serious and shareholder-friendly commitment.

Later on, longtime CFO Michael Cooperman announced an orderly retirement. The 65-year-old executive handpicked his replacement a year ago, installing Dave Singh as vice president of finance to ensure a smooth learning curve and transition. If that weren't preparation enough, Cooperman will also stay on in an advisory role for an unspecified period.

Two cows.

Image source: Getty Images.

Now what

The simple CFO transition removed a cloud of uncertainty from Tucows' horizon. Singh's background in telecom operations ensures that Tucows will continue its full-court press on the Ting-branded fiber-optic and mobile services.

And that buyback policy is a strong vote of confidence, especially since it expires in early 2018. Moreover, the company collected just $22 million in operating cash flows last year and the balance sheet only holds $15 million in cash equivalents. Tucows shares have gained a spine-tingling 130% over the last 52 weeks, but management is betting a downright audacious amount of money on further gains.

10 stocks we like better than Tucows

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tucows wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of April 3, 2017

Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends Tucows. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Personal Finance Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More