T-Net 20 High Tech Stock Index Update by Michael Volker
The T-Net20 index closed at 2512.06 on September 24, 1999. This means that a $1000 investment in January 1998 in a basket of stocks comprising B.C.'s top 20 technology companies would now be worth $2512. In the last TIA Monitor update the index stood at $2351 (Aug 6). Since then the index surpassed the 2800 mark.
Starting in October, the top 20 list will be updated to include newcomers Creo Products Inc. (TSE:CEC, NASDAQ:CREO) and Pivotal Corp. (NASDAQ:PVTL), both of which went public during the summer months. Creo offered its shares to the public at US$15 and has traded as high as $28.38, closing on Sep. 24 at $24.25 for a total market capitalization of more than C$1.1 billion. Pivotal, which offered its stock at US$12, closed at US$16.88 for a market capitalization exceeding C$487 million.
This will place Creo and Pivotal in the fourth and fifth spot, respectively, in the top 20. These companies, along with PMC Sierra, trade on the NASDAQ stock market. These additions will significantly boost the aggregate value of our top tier grouping towards the $20 billion mark.
As impressive as this valuation may appear, the technology industry in B.C. is still in its nascent stages. Only a few years ago, companies were aiming for the $100 million sales milestone. In comparison to other technology regions, many of which are home to many $1 billion-plus companies, we still have a long way to go. In my view, there's plenty of upside potential in the stock prices of this group. After all, they're just getting started!