Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : KAZZ INDUSTRIES-A UNIQUE SNOWBOARD CO. AND SO MUCH MORE... -- Ignore unavailable to you. Want to Upgrade?

To: David Michaud who wrote (535)	10/10/1999 6:39:00 PM
From: CIMA	Respond to of 686

Sunday 10 October 1999 High-tech stocks make ASE soar Deborah Yedlin, Calgary Herald The investor who poured money into the Alberta Stock Exchange last Dec. 22 after the index hit its 52-week low of 1650.82 would have realized a whopping 72-per-cent return by Sept. 30. By comparison, the Toronto Stock Exchange 300 index has risen 9.2 per cent over the same period. Despite the surge in commodity prices, high-tech stocks dominated the trading activity on the ASE in the third quarter. Only one oil and gas company, Ventus Energy Ltd., made the list of 10 most active traders in terms of value. Ventus came in at number five with almost $20 million worth of trades in the July-September period. Not surprisingly, Wi-Lan outpaced them all, with trades valued at $89.2 million. Wi-Lan, which is a developer of wireless data communications technology, rose 36 per cent during the third quarter and analysts are expecting more from the company and its stock price. "Wireless is a sexy market these days," says Gene Vollendorf, who manages the small and micro cap funds for Bissett & Associates. The other consistent performer was Telebackup Exchangeco. Telebackup Systems was acquired by Veritas in June. The exchangeable shares, which trade under TBP.e, steadily traded upward through the quarter precisely because of the underlying Veritas story. Veritas was recently chosen by Microsoft to manage the software giant's storage and data management needs. "It's one of those stories that you tuck away and enjoy," says Brian Pow of Acumen Capital Partners. Analysts say that investor appetite appears to be turning back to the smaller cap stocks because the valuations are not as high as the larger companies. "The market has had a great surge in growth stocks over the last 10 months, indeed over the last several years. I think we've now seen the tide turn to value stocks, so on a valuation basis, there are more attractive alternatives in small caps over large caps," says Patrick Slater, portfolio manager with QVGD Investors Inc. While the momentum is shifting from growth to value, it does not preclude continued interest in the high tech sector. It just means investors will be looking at the high tech stocks on a relative valuation basis. "Investors are looking for relative value within the lofty valuations. If something is trading at 100 times earnings versus a similar company trading at 60 times earnings, they will likely choose the one with the lower multiple," explains Vollendorf. With the renewed interest in the smaller stocks, analysts are beginning to see an increase in what investors are prepared to pay for the better companies. "The quality of stories is such that it's attracting higher quality investors," says Pow, implying that the institutional investors are taking a closer look at ASE-listed companies. Looking to the fourth quarter, the expectation is for the resource weighted stocks to come out of the woodwork. "The small caps in Canada are overweighted in gold, oil and gas, and paper and forest products and those are the areas that will remain strong," says Slater. There was evidence of that when looking at trading volumes, but because the stocks had yet to respond to the higher resource prices the aggregate trading value was not as high. In fact, the second most active trader in the third quarter was Savanna Resources Ltd., a gold mining company with interest in South America. A total of 13.4 million shares traded hands between the end of June and the end of July, but the share price was in the two-cent range putting it at the low end of the value scale. The ASE closed at another 52-week high on Friday, at 2889.09, up 35.35 points on the week. The top value trader was Wi-Lan, which traded $3.6 million worth of shares. Top 10 Value Trader on the ASE July 1, 1999 to Sept. 30, 1999 1. Wi-Lan $89.2 million. 2. Telebackup Systems $28.8 million 3. Cybersurf $26.2 million 4. Highpoint Tele. $20.7 million 5. USA Video Interactive $20.5 million 6. Cell-Loc Inc. $20.1 million 7. Ventus Energy $19.9 million 8. EcomPark $13.2 million 9. Biotech Holdings $8.9 million 10. Kazz Industries $5.6 million