T-Net 20  Article for TIA Monitor (July/Aug)  May 28, 1999.

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

The T-Net20 index, which closed on May 28th at 1830, tracks the performance of the twenty largest publicly traded B.C. technology companies (excluding over-the-counter stocks). It's easy to relate to: A $1000 investment in Jan'98 would now be worth $1830.

During May, Sierra Wireless (TSE: SW), a well-known Richmond firm providing wireless data communications equipment, went public at $14.50 per share giving it a valuation of approximately $200 million.

CREO Products Inc., one of B.C.'s largest and fastest growing private companies, also filed a prospectus for an initial public offering of shares at an anticipated US$14 per share. With approximately 32 million shares outstanding after the new issue, this would value CREO in excess of $650 million (Cdn).

With these valuations, both companies will join the T-Net20 list thereby increasing the total market value represented by the top twenty firms. It should be noted that this increase in value does not imply an increase in the value of the index. The index is a "relative movement indicator" meaning that on the day when the make-up of the list changes, the new list will begin with the closing index value for the previous list of companies. It will then start tracking the growth of the companies on the new list. This is equivalent to taking your money out of the old list and re-investing it in the new list.

At the start of the year, I was hopeful that we'd see the index hit 2000 by the year 2000! That's now within 10%!

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.

Copyright, 1999.