PUNT OF THE WEEK: Cloud computing specialist Gamma Communications looks set for a lockdown boost
In demand: Tech firm Gamma Communications specialises in ‘cloud’ products
What is it? Tech firm Gamma Communications specialises in ‘cloud’ products – where computer programmes run over the internet without needing users to download clunky software.
What’s the latest? Coronavirus has created a new level of demand for its products, as employees try to find ways working together while in their own homes.
The firm revealed this week it had seen strong growth since the beginning of the year.
Who backs it? Gamma’s biggest investors are mostly well-known asset managers such as Liontrust, Standard Life Aberdeen, Merian and Kames Capital.
Why should you invest? James Lockyer, an analyst at Peel Hunt, thinks Gamma will benefit from a ‘second wave’ in tech spending as companies adjust to more permanent home working arrangements.
It is also paying a final dividend of 7p per share, when many firms have cancelled theirs.
And why shouldn’t you? Some caution is necessary going into the second half of the year ‘while the business readies itself for potential recessionary impacts’.