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Gold/Mining/Energy : Certicom Corporation (TSE:CIC, NASD:CERT) -- Ignore unavailable to you. Want to Upgrade?

To: Ron Nairn who wrote (3064)	3/13/2000 6:12:00 AM
From: Tom Drolet	Respond to of 4913

Ron: Some more, a reasonable mention of CIC in Bill Hanley's column in Canada's National Post on Saturday. (The TSE 100 bit near the bottom). Tom D. The cold and old, the hot and new William Hanley Financial Post "Holy cow!I'm rich," the Californian investor exclaimed to a reporter when asked what he thought about the news that the Nasdaq composite index had closed over 5000 on Thursday for the first time. And that observation was likely repeated in one form or another across the United States by those people who have been investing in the technology stocks that populate Nasdaq. That 5000 was first breached on Tuesday just as the plunge in the shares of Procter & Gamble Co. had stockholders reaching for the Depends was a stark reminder of how investors are embracing the new economy growth stocks and shunning the old economy value names dragging down the Dow Jones industrial average, which fell 374 points that day and is barely ahead of where it was a year ago. A year ago, the Dow was set to break 10,000 any day -- it closed over that magic mark on March 29 amid much rejoicing -- and many of the technology, media and telecommunications issues that were to morph into the new economy were still viewed as highly speculative one-day wonders. P&G, meanwhile, was riding high, an unassailable purveyor of brand names worldwide. Today, P&G, off more than 50% from its high after falling more than 30% on Tuesday, and most of its Dow co-members, including brand-name giants Coca-Cola Co. and McDonald's Corp., are giving new meaning to the term "blue chip." Meantime, the Nasdaq composite, home to new economy issues and comprising more than half the value of the entire U.S. stock market, has 6000 in its sights. Ed Yardeni, chief economist at Deutsche Banc Alex.Brown, sees P&G's profit warning-triggered stock sell-off as a "watershed" event. "Apparently, consumers are no longer willing to pay a premium for brand names," he says in a commentary on the new economy versus the old. "Investors are no longer willing to pay a premium for brand-name companies." Yardeni believes the future of the old economy companies will contain a wave of global consolidations. But their efforts to improve productivity will not be helped by the U.S. Federal Reserve's tightening of monetary policy. Old economy firms are squeezed by higher debt financings while new economy companies have little long-term debt and have piles of cash or can raise it in the stock market or use their huge stock prices to buy smaller competitors. --- O yes, Canada: While the Canadian stock market and investors in it have suffered over the years from the deflationary direction of commodities in an old economy setting, the rocks and trees nature of our market is rapidly changing to a point where the Toronto Stock Exchange 300 composite index is more likely to follow Nasdaq than the Dow industrials. The TSE 300, up 73.47 to 9487.14 on Friday, is closing in on 10,000 and a likely eclipse of the Dow, which is at 9928.82, this month if trends persist. The Canada-watchers at Ned Davis Research Inc. report that their TSE large-cap growth index has clearly broken a long-term downtrend that began in 1982 while their small-cap growth index broke a downward trend that began in 1993. And both of the indexes have passed their value counterparts after underperforming them from 1996 to 1998. Further, the two small-cap indexes have outperformed their large counterparts. To the Ned Davis researchers, these trends reflect a shift from the old economy stocks to the new ones, similar to what has happened in the United States and elsewhere. "Although growth stocks may be high risk near term, the break of these downtrend lines and establishment of new uptrends signal a shift in the composition of the Canadian economy toward growth-oriented industries such as telecommunications and biotechnology and away from value-oriented industries such as natural resources." The change in the composition of the TSE 100 next Friday before the open of trading is another chapter in the continuing story of this shift. In will come Descartes Systems Group Inc., Clearnet Communications Inc., Sierra Wireless Inc., CTV Inc., Certicom Corp., Four Seasons Hotels Inc., Rio Alto Exploration Ltd. and Precision Drilling Corp. Out will go Hudson's Bay Co., Cameco Corp., Cominco Ltd., Rio Algom Ltd., Ipsco Inc., Moore Corp. Ltd., Investors Group Inc. and Burlington Resources Canada Inc.