There is opportunity to be found in Australia's tech sector and...

There is opportunity to be found in Australia's tech sector and software development. Claude Walker from A Rich Life is finding value in the micro-cap space. Watch out Atlassian and Xero, there are some new micro-cap players in town!Claude's pick of the bunch is Felix Group Holdings (FLX). The stock made its debut on the ASX in January of this year. FLX is a cloud based SaaS platform for the commercial construction and related industries. "It is a riskier stock, because it is a recent IPO, but it's got an attractive business model as it is a two sided network” says Claude. "It's the platform that connects big construction companies with the hundreds of vendors it might need for a certain project. It offers the big enterprise a cloud software suite to allow them to manage [the project]... then, the big contractors demand the vendors they use get on board the Felix platform.” he says. "It's a network effect, so as one side gets bigger, it gets more attractive to the other side.” While the company doesn’t have much revenue, it certainly has a lot of cash. Based on the enterprise SaaS revenue it's on about 26x revenue and Claude says “it's not fully aggressively monetising yet, but it has the pricing power in the long term.”