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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: don jackson who wrote (2978)	3/31/1999 5:20:00 PM
From: Marc	Read Replies (1) \| Respond to of 5927

Deloitte Says Canadian Technology Stocks Are Undervalued Dow Jones Online News, Tuesday, March 30, 1999 at 17:24 TORONTO -(Dow Jones)- A Deloitte & Touche report released Tuesday claims that Canadian technology firms can compete with high-growth U.S. technology firms, but that their stocks are undervalued relative to their U.S. counterparts. The report shows that 10 Canadian firms were placed among the top-100 fastest-growing North American technology firms in terms of revenue over the past five years. Yet an index of 34 Canadian technology stocks declined 13% in 1998, versus a 40% gain for the technology-laden Nasdaq composite index and a 12% gain in the Russell 2000 Technology Index. According to Deloitte, top-performing Canadian companies include CrossKeys Systems Corp. (CKEY), Entrust Technolgies Inc. (ENTU) and IPS Automation. Entrust, a spinoff of Northern Telecom Ltd. (NT), has a large research and development operation in Canada, but is based in Texas. Deloitte officials also pointed out that the Canadian initial public offering market is moribund. In the past 15 months, 103 technology firms have gone public in the U.S., raising $6 billion. In Canada, 22 technology firms have gone public, raising about $530 million. The 103 U.S. firms didn't include any small companies which would have listed on a junior exchange, whereas the Canadian figures included junior-exchange-listed companies. Of note, the Canadian IPO figures were dominated by one IPO, that of Celestica Inc. (CLS), which raised about $340 million, Deloitte officials said. That left just $190 million or an average $9 million for the remaining 21 Canadian firms. In comparison, the average U.S. firm raised $58 million. Deloitte officials said there are about 92 U.S. technology companies in the midst of going public, aiming to raise a total of about $4 billion, compared with just one they know of in Canada, a company called Numetrix Ltd. Numetrix is hoping to raise about $25 million Candian dollars (US$16.5 million), with the road show starting next week, a source close to the deal told Dow Jones. Numetrix is a supply-chain software company, meaning it helps companies connect with their suppliers using the Internet. Deloitte officials said the problems with Canadian technology firms are complicated, but one main reason they lag behind their U.S. counterparts is that they don't promote themselves as much or receive as much attention as U.S. companies. Also, the Canadian IPO market is dry because there isn't as much capital available for technology investment in Canada, they said. By Scott Adams; 416-943-7804; scott.adams@dowjones.ca Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved.