The Globe and Mail reports in its Friday edition that although COVID-19 has been a vicious headwind for many stocks, it has emerged as a strong tailwind for Mediagrif Interactive Technologies ($5.68). The Globe's Shirley Won writes that Lester Asset Management stockpicker Stephen Takacsy says Mediagrif's e-commerce platforms have enjoyed strong growth during the pandemic. Mr. Takacsy calls Mediagrif an attractive turnaround play. Luc Filiatreault, a veteran tech entrepreneur who took over as chief executive officer last fall, embarked on a growth strategy after the company took writedowns on struggling web-based businesses last year. Mediagrif's biggest revenue drivers include an e-commerce platform for large firms, which include clients such as Sobeys and Societe des alcools du Quebec for its on-line sales of cannabis, and another platform for bidding on government contracts. Mr. Takacsy says, "Roughly 80 per cent of its $80-million in sales is recurring revenue." He says a risk is whether Mediagrif can successfully execute its acquisition strategy after raising money from a recent financing. The Globe reported on Aug. 9, 2019, that Desjardins recommended avoiding Mediagrif when it could be had for $5.53.
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