Part 1 of this series covered a bit of the background on why tech based penny stocks present good potential for those with the risk appetite, but only briefly touched on the two trends that are really worth looking at this year. Mobile apps and social media.

This slide really explains why apps are where you need to be looking in tech:

Chances are that you own a smart phone. If you don’t own yet, brace yourself because in a short while the barebones mobile phone will be going the way of the dodo. But what you’ll find on your Blackberry, iPhone, or Android smart phone is a wide variety of apps that come bundled with the phone, and others that you can download (at a cost).

This type of software marketplace is breaking down marketing walls and giving end users instant access to all kinds of great software products. There are millions more customers getting online every year and they are eager to spend money to get the apps that are useful for their everyday lives.

Finding the investment opportunity
The majority of app companies are small startups and aren’t publicly listed. However, there are companies that you can invest in that are in this market. Poynt and Intelligent are two examples. Poynt is a good example of one of these companies that is doing it right on all the different platforms. Many companies will be looking to deliver software to only the Android platform or maybe just the iPhone, but when you see a company like Poynt positioning themselves cross-platform they are positioning themselves for success no matter which smart phone wins the race.

Social Media:
I will almost put a guarantee that you have a Facebook account. Canada has one of the highest penetration rates of facebook users in the world. They even made a movie about the company. This type of revolution is truly generational and social media is this generation’s personal computer. Companies are fast in trying to tackle social media in anyway they can to figure it out. But in reality, most of them do it poorly.

There is a great opportunity for small companies to help out their economic bretheren and show them what social media is all about. A lot of social media companies are privately owned however there are some small cap social media companies that are being traded.

What To Look For In A social Media Company
Social Media companies can come in many different flavours and have different metrics for success. Social media providers like facebook and twitter provide the base platform for social interactions to occur. These sites are all about eyeballs. The more eyeballs on the page the bigger success they will be. There are other companies like Zynga (think Farmville) that use the platforms to build focused interactions for people using the social media sites. Then there are companies that provide the social media consulting at exorbident rates to other companies that need help trying to communicate to the masses using this new technology.

Wrapping Up The Tech
The technology industry is incredibly fast moving. Many situations it’s adapt or die and the pace will only continue to accelerate as people continue to rely on their smart phones and social media for running their lives.

Hope you’ve enjoyed this brief little discussion on tech. If there are some companies that you know of that are tech based and in these two fields they are likely worth researching. Feel free to post them here for others to check out as well.

You can follow me on twitter at cdnpennystock. That’s where I do my social media thing.

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