T-Net20 Update Sep/Oct 99

T-Net 20 Article for TIA Monitor (Sep/Oct) Aug 7, 1999.

T-Net 20 High Tech Stock Index Update by Michael Volker

The T-Net20 index closed at 2351 on Aug 6, 1999. This means that a $1000 investment in Jan'98 in a basket comprising B.C.'s top 20 technology companies would now be worth $2351. In the last TIA Monitor update the index stood at $1830 (May 28). At only mid-year, the index has broken my "2000 by 2000" prediction.

Much of this increase in value is attributable to PMC Sierra Inc. (NASDAQ:PMCS) which continues to outperform analysts' expectations. PMC's market capitalization is approaching a whopping $8 billion (Canadian)! PMC is shipping more than $325 million (annualized) in ATM chips with a bottom line of $85 million (after tax), unquestionably making it B.C.'s sales and profit leader. I'm betting on PMC to be the first B.C. firm to hit the $500 million sales milestone. PMC is trading in the US$80 range, up from less than US$11.50 last October.

During July, Creo Products Inc. (TSE:CEC, NASDAQ:CREO) completed its long anticipated IPO at US$15 per share, giving it a market cap of US$480 million. Creo is one of BC's largest and fastest growing companies specializing in pre-press printing technology. Annual sales volume is running in excess of $230 million with over $22 million in net earnings. Creo will soon be added to the T-Net20 index.

Creo was soon followed by Pivotal Corporation (NASDAQ:PVTL) of North Vancouver, a producer of client management software, which completed its IPO in early August at US$12.

It has been a "hot" summer for B.C. technology companies which continue to demonstrate the wealth-generating capability of this sector.

Michael Volker is the Director of the University/Industry Liaison Office at Simon Fraser University, Chairman of the Vancouver Enterprise Forum, and a technology entrepreneur. Contact: mike@risktaker.com.