T-Net 20 High Tech Stock Index Update by Michael Volker
The T-Net20
index closed at 2827.77 on November 30, 1999. This means that a $1000 investment
in January 1998 in a basket of stocks in BC’s top 20 technology companies
would now be worth $2,827. This represents an annual gain of almost 100%. The
index stood at 1426 at the beginning of 1999, and it looked like it could hit
2000 by 2000.
At
the close of 1999, five companies headquartered in BC were worth over $1 billion
each! During the year, three companies (Creo Products Inc., Pivotal Corp, and
Sierra Wireless Inc.) went public and subsequently showed strong gains.
The
new Canadian Venture Exchange (CDNX) was launched in November. The CDNX is the
amalgamation of Canada’s junior exchanges - - the Alberta and Vancouver Stock
Exchanges. This is good news for technology companies since it presents them
with another avenue for financing. Indeed, many of the companies on the T-Net20
list got their start on the CDNX’s progenitor, the VSE. Name aside, the CDNX
holds the promise of becoming a North American venture market for developing
companies, filling a niche just below the Nasdaq’s small cap market which
commands a higher entry level - - a market cap of US$50 million.
More
startups are being created than ever before. Many of these firms are candidates
for junior public offerings on the CDNX. Being listed on a regulated exchange
will attract not only the more speculative “retail” investors, but may also
get the attention of potential acquistors. At a recent KPMG high technology
breakfast presentation, it was noted that mergers and acquisitions outnumber new
listings on senior exchanges.
The
healthy performance of our tech sector as reported by the T-Net 20 index, will
help in attracting capital to emerging CDNX companies.
Copyright, 1999.