There are a lot of different industries to invest in small companies. The majority of the ones featured on the Canadian Penny Stocks blog are resource based. It makes sense, Canada is a resource rich country. But there’s another group of stocks that have been quietly lurking in penny stock land and while there have been a few small moves nothing too significant has occurred to date. This is about to change.

The technology industry has been a mighty force for 30 years now and if you look at the worlds richest people you’ll find that almost 50% of the 25 richest people made their fortunes in tech. Smaller technology companies are starting to find success with coming to market earlier than before and opening up the investing opportunities to open market. This is signficant because it can allow for small cap investors to profit on these tech companies before they reach the explosive growth phase.

The Two Profitable Tech Arenas
Technology has grown so much over the past while and really can be broken down into much smaller constituent parts. Hardware and software and the two clear delineations but it can go even deeper on both sides.

Hardware can be an interesting way to invest, however it can take a long time to bring the product to market and you have to deal with a lot of supply chain issues, product recalls, and distribution. Any one of these issues can cripple a small company and make it even tougher for us investors to make money. We’re not too interested in hardware tech companies today.

Software is the way to go. But what software?
Software is such a ubiqutous thing these days as it runs our lives. Think email, web browser, even Google and Facebook are nothing without the software that runs them. In 2011 there are two big themes in technology and more specifically software. Apps and Social Media.

There are huge upsides in the Apps and Social media growing markets. Part 2 we’ll talk more about both of them and why small companies are positioned to do well in 2011.

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