Skip to main content

Paramount Resources Ltd(POU-T)
TSX

Today's Change
Real-Time Last Update
Volume

COVID-19 Creating Tailwinds for Digital Technology Companies

BAYSTREET - Thu Jul 30, 2020

Following the market nosedive in March at the hands of the COVID-19 panic, technologies companies have led the market recovery, including the Nasdaq Composite repeatedly setting new record highs. It doesn’t take a seasoned market analyst to understand that tech stocks are outperforming because the contactless society being implemented to control germs is dependent upon tech. Nor does it take a market boffin to recognize that this is a trend that is going to continue, likely for a long time.

In that light, companies like Zoom Video Communications (NASDAQ:ZM), Slack Technologies (NASDAQ:WORK) and Teladoc Health (NYSE:TDOC) have experienced years’ worth of growth in a matter of months as consumers and businesses swarmed to their products.

Companies catering to home maintenance and services, like Angie’s List (NASDAQ:ANGI), have performed well since March too, which caught the attention of The Silicon Review in this month naming peer-to-peer marketplace app HeyBryan Media (CNSX:HEY.CN)(OTC:HEYBF) as one of its “30 Fastest Growing Tech Companies of 2020.”

Incidentally, it’s an anomaly and speaks to the HeyBryan technology that a company trading at 5 cents per share with a market capitalization of $4.4 million makes that sort of a list.

HeyBryan is a comprehensive app that provides users a database of fully vetted and verified maintenance experts to complete a bevy of tasks, such as furniture assembly, painting, electrical, installing smart home devices, yard maintenance, etc. An in-app payment system removes the need for any cash changing hands, a safety feature and growing trend in the coronavirus environment.

“The COVID-19 pandemic has cancelled countless vacations, as well as shifted how we live our day-to-day lives,” said HeyBryan CEO Lance Montgomery in a phone conversation with Baystreet.ca. “People had money saved for those trips and now many have chosen to invest that money in their largest asset, their home. We’ve been able to capture their time to connect them with professionals to get projects completed.”

The Vancouver-based company doesn’t only cater to homeowners; it is a service for businesses as well. In May, HeyBryan added plexiglass installation services to its offerings in order for businesses to remain in compliance with government guidelines related to arresting the spread of COVID-19.

Similar to the U.S., Canada looked to mediate a financial crisis resulting from the pandemic by providing stimulus money to citizens and businesses. The U.S. gave single people making under $100,000 annually a one-time payment of $1,200 and families up to $2,400 per married couple and $500 per dependent child. Canada was even more generous, allowing people 15 years of age and older to apply for up to $2,000 in direct monthly payments for four months.

Presumably that money is also cycling back into economies through home projects and repairs.

The Famous Namesake Takes America By Storm

HeyBryan gets its name from Bryan Baeumler, a Canadian home maintenance expert and star of multiple hit television shows, including the wildly popular, award winning HGTV Canada show “Island of Bryan,” where Baeumler and his wife, Sarah, renovate an abandoned beachfront resort, the Caerula Mar Club, in the Bahamas.

When launched in the spring of 2019, the show immediately smashed HGTV Canada viewing records. Last month, HGTV U.S. repackaged the show, branding it “Renovation Island” for the American audience. The new show has found immediate success, attracting more than 3.2 million total viewers for its premier on June 12 while performing well across multiple demographics.

Data shows that promotion of the program on HGTV’s social media platforms (Facebook, Twitter and Instagram) generated over 440,000 views.

Much like its namesake, HeyBryan could one day find itself in the U.S. markets. Montgomery said that the initial focus remains on the Canadian markets, while the U.S. is part of the long-term strategy.

“Home maintenance is a global issue, which affords us a fortunate position for growth in any market,” he said during the call. “As noted by The Silicon Review, we’re generating momentum right now by capturing share in the highly fragmented Canadian markets even during one of the most challenging times our economy has ever experienced,” he said, adding, “We will remain very calculated in execution, but certainly have intentions to participate in the large U.S. markets when the time is right.”

Statista reported that the U.S. home improvement market generated sale in excess of $407 billion in 2019.

Corona-Boost

It seems counterintuitive to see companies getting a boon in their business during a global pandemic like COVID-19. But, that’s the way things go. This social distancing policy has had profound effects on our world already, where people of all ages have been forced to become comfortable with digital communications and processes, albeit healthcare or scheduling and paying contractors.

For HeyBryan, that’s playing right into their business model. Surely, it doesn’t hurt to have an internationally recognized TV star at the head of the brand and as a major shareholder either.

Legal Disclaimer/Disclosure: While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing. Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of thirteen thousand six hundred and fifty dollars for HeyBryan Media Inc. advertising from the company. There may be 3rd parties who may have shares of HeyBryan Media Inc. and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. The owner/operator of Baystreet.ca holds shares of HeyBryan Media Inc. and does not intend on selling any shares within 72 hours of this updated publication date after such point we reserve the right to buy and sell shares in the open market, no further notice will be given. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Baystreet.ca, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.