T-Net 20  Article for TIA Monitor (Jan/Feb'00)  Nov. 30, 1999.

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.

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.