Press Release from Dow Jones News Service
This is a press release from the Dow Jones News Wire talking about Misener's investment in Plaintree and others. The PR machine is cranking. Just a thought though, I wouldn't be suprised if they don't release anything about the numbers in this negative climate. They may wait until it is more advantageous to release positive news as the stock price seems to be holding up well. They may just keep getting stuff like this released to keep top of mind awareness levels up and try to increase penetration into the US mind share.
Remember to be patient. Great things are on the horizon!
<P>By Ben Dummett
<P>TORONTO (Dow Jones)--Relative valuation is a key tool that Steven Misener,
manager of the C$350 million BPI Canadian Small Companies Fund, uses to buy and sell stocks.
<P>Canadian small- and mid-capitalized stocks tend to trade at lower multiples than their larger Canadian peers and their U.S. and global peers, which creates buying opportunities.
<P>Misener will look to sell or take profit in the funds holdings as this value gap narrows, a process which is often spurred by the graduation of a stock to a senior exchange from a junior one and/or a rise in interest in the stock<BR>from U.S. investors.
<P>Misener's focus on relative valuation has certainly paid off, helping the BPI Canadian Small Companies Fund post a 35.5% gain in 1999.
<P>In addition, it "has allowed us, for instance, to stay, in the wireless sector," by taking profits in the fund's big gainers and redeploying the money in stocks that have yet to attract a lot of investor attention, the fund manager said.
<P>Misener has taken profits in the stocks of several high-flying wireless companies, including Cell-Loc Inc. T.CLQ), MDSI Mobile Data Solutions Inc. (MDSI), and Wi-Lan Inc. (T.WIN). In turn, Misener has invested the cash in such wireless stocks as Mobile Computing Corp. (T.MBL), Plaintree Systems Inc. (LANPF), Kasten Chase Applied Research Ltd. (T.KCA), and Xplore Technologies Inc. (V.XPL).
<P>The selling of some issues doesn't mean that these stocks won't go higher or that the underlying companies aren't well run. Instead, it implies a desire to reposition the fund's holdings in stocks that are expected "to offer better performance from market perspective and a more attractive risk-reward profile on the price of the shares," Misener said.
<P>'Turnaround Situations' Can Provide Opportunities
<P>Misener said he was able to get Plaintree, Kasten Chase and Xplore Technologies, in particular, at attractive values, because they represent what he describes as "turnaround situations." All three companies have been refinanced and Plaintree and Kasten Chase are also headed up by new management teams.
<P>Despite the recent pullback in wireless stocks as part of a widespread sell-off in technology issues, Misener is still bullish on the wireless group because of its long-term growth prospects.
<P>"There's no question wireless technology applications will pervade all aspects of personal and business life in the next few years....It's an irreversible trend that blows forward," the fund manager said.
<P>The same growth outlook holds true for the technology arena in general, he said.
<P>However, "the challenge for investors and for the stock market is to price that dramatic growth in a sustainably proper fashion and that is what the market is trying to sort out now," Misener said in reference to th e tech sector's ongoing volatility.
<P>The fund's technology holdings include 01 Communique Laboratory Inc. (T.ONE), Aastra Technologies Inc. (T.AAH), Electronics manufacturing Group Inc. (V.EMY).
<P>Historically, the BPI Canadian Small Companies fund has held stocks with a market cap between C$50 million and C$500 million. However, over the last 12 months, the ceiling has increased to the C$1.0 billion-C$1.5 billion range.
<P>"We broadened our focus in looking at small-cap stocks to improve the general liquidity of the portfolio; also to allow us to ride our winners longer and not feel compelled to begin the profit-taking process," once a stock reached a market cap of C$600 million to C$700 million, Misener said.
<P>Misener said he has also used proceeds from profit-taking in the technology group to boost his weighting in the oil and gas sector to about 12% from a low of 6% earlier this year, attracted by the strength in oil price and the attractively priced stocks.
<P>In this sector, the fund holds energy-services companies NQL Drilling Tools Inc. (NQL.A), Ensign Resource Service Group Inc. (T.ESI) and Cenalta Energy Services Inc. (T.CEA).
<P>Meanwhile, among the producers, the fund's holdings include Baytex Energy Ltd. (T.BTE) and Crestar Energy Inc. (T.CRS).
<P>The fund manager also favors certain forest-products stocks, encouraged by solid pulp prices, balance-sheet improvements among industry players and continued consolidation in the group.
<P>In this sector, Misener owns Slocan Forest Products Ltd. (T.SFF) and International Forest Products Ltd. (IFP.A).
<P>-Ben Dummett, Dow Jones Newswires; 416-306-2024;<BR>ben.dummett@dowjones.com
<P>(END) DOW JONES NEWS 04-04-00<BR>12:00 PM<BR>End of News<BR></P> |
