Select a publicly-listed BC Technology Company that you would like to invest in (assuming you were given funds for this purpose).

Explain why you believe this to be a good investment making specific reference to the Company's financial performance and financial health - both historical and looking forward. What is your estimate of the Company's share price in one year from now?

(Please limit your discussion to no more than 2 pages - e.g. 1 sheet, double-sided. More pages will not be read.)

Update:13Oct07 - Is there a "list" of all the possible companies? How many are there? (more than 100?) What exchanges are they listed on? (TSX, TSX-V, NASDAQ, CNQ, OTC-BB) Where can I find them? (BIV, T-Net, Globe& Mail, BC Business, etc)

Update:18Oct07 - Tip: Unlike Larry the Liquidator (in Other People's Money), you will want to find a company with strong performance prospects whose shares will be popular with investors (unlike New England Wire and Cable). Companies that recently raised capital for expansion might be a good place to start. Companies that announced new products or announced good growth (ie annual growth in sales and earnings expressed in per cent) are also good candidates. You are NOT expected to argue why you picked this company over others - you are ONLY expected to give some good reasons why you like your choice, e.g. strong growth, healthy balance sheet (what makes a balance sheet healthy?), relatively low P/E (Price/Earnings ratio), increasing EPS (earnings per share), strong management, etc. On the internet (eg Yahoo Finance) you can also find analysts' reports on various companies in which they give their reasons for investing in certain companies. These may be helpful to you. Here's an example regarding Metrobridge.

Update:19Oct07 - Something to think about: what's your own risk/reward profile? Do you want to pick a large high cap company like MDA or would you prefer to go with a low-cap venture listed company like Webtech, Visiphor or Meridex? Do you want to be a speculative investor in young, unproven (but high potential) companies that can give you 10 to 100X your money back (or lose it all) or would you prefer to invest in a mature company that can give you 30% in a year or two? (There's no right answer).

ANSWERS & GRADING

Of course, there is no absolutely right answer here. Note - if you did not pick a BC Company, you did not answer the question (and got a maximum grade of 6).

Your discussion should be focused mainly on WHY a company's stock price will rise in the future. The past is no indication of future performance other than to identify sound management (which is good) and a good track record. The only reason a company's stock will rise is because of increased demand by investors. More demand can result if a company's performance is expected to improve - new orders, products, contracts, etc. It's good to look at stock price relative to earnings (past and future projections) and how the P/E compares to industry norms. A company's annual growth (sales % increases) is very important, too. Any company with a hockey stick revenue curve will attract investor attention.

You should also state your investment criteria: e.g. high risk/high return, medium r/r, low r/r. Picking a speculative junior company is a lot different from picking a more stable, muture, consistent company.