Cantech Letter» December 09

Waiting on a Leader: Vancouver’s Tech History

Cantech — Thu, 28 Jan 2010 06:11:34 +0000

Granville Street from Granville Bridge, 1966 by Fred Herzog. Equinox Gallery

Capital West Partner’s Brent Holliday breaks down the history of tech in Vancouver. While Lotusland has enjoyed its share of innovation and leadership in the space, Holliday argues that the lack of a clear heavyweight champion, such as a Research in Motion, means tech heads here have had to be content with being a mere piece of the puzzle that is Vancouver’s exceptionally diverse economy.

When you think of Ottawa and technology, you think telecommunications. When you think of Waterloo and technology, you think RIM. When you think of Vancouver and technology, you think… umm… well lots of things. That is the problem and the opportunity with Vancouver’s high technology industry: Jack of all trades, master of none.

If we step into the Way Back Machine for a minute, I will take you to the roots of technology in Vancouver. A BC Tel incubator with the catchy name of MPR Teltech and a company that still leads all others locally in terms of revenue: McDonald Dettwiler & Associates or MDA. These two companies were the source of much of what we have today in Vancouver’s technology scene. MDA has morphed over the years from a space research company into a software and services company with a space research company that they can’t get rid of. Engineers who worked on satellite technology in the 70’s and 80’s at MDA became the foundation of a wireless data strength that has seen Glenayre, MDI (which was bought by Motorola) and now Sierra Wireless emerge as top companies in their space. Two engineers from MDA started one of Vancouver’s biggest success stories, Creo which sold to Kodak six years ago for over a billion dollars.

Granville and Robson 1959, Fred Herzog Equinox Gallery

MPR Teltech was our version of Bell Northern Labs that helped Ottawa define itself as a telecommunications hub. BC Tel broke it up in the early 90’s and sold it off in one of the worst examples of foresight in telecommunications history. Newbridge scooped up a very valuable product line from MPR for chump change and a California semiconductor company called Sierra, bought the PMC group from MPR. Voila, PMC-Sierra emerged, still one of the top companies locally. Another group out of MPR created Abatis Systems (bought by Redback for US$680 million in 2000) and that same group of entrepreneurs started Octiga Bay systems that sold to Cray Computers in 2005. That same group is going for success number three in a stealth start-up today.

While all of this activity at MDA and MPR was happening in the late 80’s, a teenage son of Burnaby truck driver created a video game for the Apple II computer, called Evolution. Don Mattrick went on to build Distinctive Games until he sold to Electronic Arts in 1991. Seeing the potential of the creative class of film, TV and video production in Vancouver, EA made a big bet on a massive Vancouver studio, EA Canada. The single largest video game studio location in the world now operates in Burnaby, about 3 km from where Don mashed together his first game. The digital media industry is my pick for one of the sectors that emerges as a defining industry for Vancouver. From the dozens of video game studios operating in EA Canada’s shadow, Vancouver has also seen a tremendous rise in consumer focused Internet media. Exactly eight of the top eight Internet media companies in Canada by traffic are based in Vancouver, according to the Peer 1 Canada Start-Up Index. For some reason, the left coast has figured out how to attract millions of eyeballs to content on the Internet better than any other region. A couple more successful exits such as Super Rewards ($50 million) and Now Public ($25 million) in Internet media will spur further activity.

Hastings at Columbia, 1958 Fred Herzog. Equinox Gallery

The software industry has been difficult to establish with that large talent-sucking monster to the south in Redmond, WA. Yes, a small company called Microsoft is only a two hour drive away. Despite that challenge, Vancouver has been home to leading global software innovations like AccPac, Crystal Reports and Pivotal CRM. Crystal Decisions became Business Objects, which became SAP and still employs over 1,000 engineers and sales people locally. Emerging stars in software such as Elastic Path, Absolute Software and Faronics have benefitted from the critical mass of great software developers.

Another industry sector that I believe will emerge to define Vancouver is clean technology. We had the world beating company in the late 1990’s in Ballard Power Systems, but the bloom has certainly fallen off the fuel cell rose. Despite that fall from grace, Ballard has a bright future, just not in the automobile. Many other companies are rising to take the mantle from Ballard. Westport Innovations with its efficient diesel technology. Delta-Q Technologies makes chargers for the new electric cars. Azure Dynamics makes the electric systems for next generation electric buses and trucks. Pulse Energy helps buildings manage and optimize energy consumption. Tantalus Systems makes the smart meters that will change residential energy management. The list goes on. And what fits the stereotype of Vancouver better than clean and green? We Birkenstock wearing, bike riding, pot smoking hippies love a green industry, so that we can feel better about making money…

If I haven’t convinced you that Vancouver’s technology scene has no defining industry or company yet, consider the current associations that “govern” and represent the industry, all based in Vancouver: BC Life Sciences, BC Innovation Council, BC Technology Industry Association, DigiBC (wireless and digital media) and the Premier’s Technology Council. I think you see the point. Lots of activity and excitement, but still lacking a clear personality. That is Vancouver’s technology scene in a nutshell.

Granville & Georgia St.'s 1971-2008

Brent Holliday is an M&A specialist in technology with Capital West
Partners, Western Canada’s largest independent corporate finance advisory
firm. He started in the Vancouver technology industry in 1994 as general
manager of the Internet group of Multiactive (now Maximizer) Technologies.
For a dozen years starting in 1997, Brent was an early stage technology
venture capitalist with BDC and then Greenstone Venture Partners, a $40
million cross-border venture fund he founded with two partners. Since 1998,
Brent has been a writer on technology and early stage finance and is
currently a featured columnist with BC Business magazine as well as his own
blog at TechnicallyHip.ca.

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Top 10: Vancouver Tech Stocks of 2009

Cantech — Thu, 28 Jan 2010 06:11:05 +0000

Vancouver isn’t exactly known to be a technology hub in the same way that Kitchener-Waterloo is or Ottawa once was, but perhaps this has more to do with a diverse BC economy. The Top 10 (Greater) Vancouver tech stocks of 2009 features some virtual unknowns, but also some of the more established techs in the country, such as aerospace giant MacDonald Dettwiler.

1. ERA Carbon Offsets (TSXV:ESR) +850%
Price as of Dec 31st, 2008: $.08
Price as of Dec 31st, 2009: $.76
Former Capital Pool Company turned fledgling carbon offset upstart began to bank
some sizable cheques from Europe in 2009, moving it out of the red zone. A proposed
$5 million financing from a large German energy company provided investors security
and sent the stock on a sustained run for most of ’09.

2. E-Xact Transactions (TSXV:EXZ)+409%
Price as of Dec 31st, 2008: $.055
Price as of Dec 31st, 2009: $.28
Seemingly dormant provider of payment gateway solutions, E-Xact never seems to put
out news. Despite it’s tiny size, though, the company offers value to investors,
with a cash position that nearly equals its market cap, and an aversion to losing
quarters.

3. Tranzeo Wireless (TSX:TZT) +279%
Price as of Dec 31st, 2008: $.33
Price as of Dec 31st, 2009: $.1.25
In the summer of ’09 you could have had all the shares you wanted of this Pitt Meadows’s based
manufacturer of wireless network equipment at .35-45 cents. Tranzeo spent the most
of the rest of the year recovering to levels it had not seen since 2007.

4. Western Wind Energy (TSX:WND) +215%
Price as of Dec 31st, 2008: $.60
Price as of Dec 31st, 2009: $.1.89
Coquitlam based Western Wind still isn’t generating much revenue yet from its wind
projects in California and Arizona, but investors have gained confidence in The
Company’s big plans. Recently it was revealed that mega utilities company Pacific
Gas and Electric is looking to spend $900 million on a wind project in Tehachapi,
Cali, where Western Wind owns land rights.

5. Bioteq Environmental (TSX:BQE) +210%
Price as of Dec 31st, 2008: $.39
Price as of Dec 31st, 2009: $1.21
Contaminated water treatment company Bioteq Environmental patented process recovers
metals such as zinc from contaminated water that used to end up in landfill. As a
bonus the process leaves clean, drinkable water. Municipalities like Breckenridge,
Colorado signed on in 2009. Bioteq is now aiming for six new projects in 2010.

6. Zongshen PEM Power Systems (TSX:ZPP) +209%
Price as of Dec 31st, 2008: $.44
Price as of Dec 31st, 2009: $1.36
Vancouver based Zongshen PEM Power, which makes electric and small gas bikes, kept a
tight lip on their fiscal 2008 results. Their April 1st release was no fool; the
244% increase in revenues came as a major surprise to investors. By mid month the
stock was over a dollar and never looked back.

7. Quizam Media (TSXV:QQ) +179%
Price as of Dec 31st, 2008: $.14
Price as of Dec 31st, 2009: $.39
Online learning company Quizam Media was another “back from the brink” story as the
stock recovered when an early January private placement provided some security to
investors.

8. Tio Networks (TSXV:TNC) +114%
Price as of Dec 31st, 2008: $.29
Price as of Dec 31st, 2009: $.62
Burnaby’s Tio Networks, which focuses on processing expedited bill payment
transactions has posted impressive year over year growth, and appeared to begin to
stem its losses in 2009.

9. Westport Innovations (TSX:WPT)+95.7%
Price as of Dec 31st, 2008: $6.25
Price as of Dec 31st, 2009: $12.23
Vancouver’s Westport Innovations put the cherry on top of a strong year in November
2009, when it signed supply deal with Volvo AB, the world’s second-biggest truck
maker. The deal made Westpoort a Tier 1 development supplier of heavy-duty
natural-gas engines to the Swedish carmaker’s fleet of large trucks.

10. MacDonald, Dettwiler (TSX:MDA) +95%
Price as of Dec 31st, 2008: $21.80
Price as of Dec 31st, 2009: $42.60
MCD was punished late in 2008 and early 2009, mostly for its UK real estate
exposure, which includes an automated registration system for land transfers in the United
Kingdom. The Company’s tried to sell its space systems division, for 1.3 billion,
but this move was quashed by the Federal government. This turned out to be lucky for
MDA, as this division scored numerous large sales in 2009.

Cantech Letter now up 31.2%

Cantech — Thu, 28 Jan 2010 06:09:58 +0000

The profiled companies of The Dollarton Cantech Letter continued to post gains in the new year. This collection of small tech stocks is now up 31.2% while the TSX as a whole is down 6.5% over the same period (September 26th, 2008-Jan 22th, 2009).

Underlying Data

1. Intrinysc Software: Profile date: September 26, 2008. Price at profile
date: $0.20. Price at Jan 22, 2010: $0.11 Gain/Loss to date: -45%

2. Carmanah Technologies: Profile date: October 6, 2008. Price at profile
date: $0.78. Price at Jan 22, 2010: $.80 Gain/Loss to date: +2.6%

3. Versatile Systems: Profile date: October 19th, 2008. Price at profile
date: $0.11. Price at Jan 22, 2010: $ .09 Gain/Loss to date: -18.2%

4. Jemtec Inc. Profile date: October 15th, 2008. Price at profile date:
$0.81. Price at Jan 22, 2010: $0.73 Gain/Loss to date: -9.9%

5. Tecsys Inc. Profile date: October 27th, 2008. Price at profile date:
$1.20. Price at Jan 22, 2010: $2 Gain/Loss to date: +66.7%

6. Matrikon Inc. Profile date: November 3rd, 2008. Price at profile date:
$2.10. Price at Jan 22, 2010: $3.75 Gain/Loss to date: +78.6%

7. Sierra Wireless: Profile date: November 10th, 2008. Price at profile
date: $9.50 Price at Jan. 22, 2010: $12.28 Gain/Loss to date: +29.3%

8. Chartwell Technologies: Profile date: November 17th, 2008. Price at
profile date: $1.55. Price at Jan 22, 2010: $1.10 Gain/Loss to date:
-29%

9. Aastra Technologies: Profile date: November 24th, 2008. Price at
profile date: $8.94. Price at Close Coverage Date (June 4, 2009): $30.58
Gain/Loss: +242%

10. Serenic Corp: Profile date: December 1st, 2008. Price at profile date:
$0.245. Price at Jan 22, 2010: $0.44 Gain/Loss to date: +79.6%.

11. Glentel Inc. Profile date: January 5, 2009. Price at profile date:
$8.75. Price at Jan 22, 2010: $15 Gain/Loss to date: 75.8%

12. Miranda Technologies Inc. Profile date: January 19th, 2009. Price at
profile date: $6.99. Price at Jan 22, 2010: $5.05 Gain/Loss to date:
-27.8%

13. RDM Corp: Profile date: February 2, 2008. Price at profile date:
$0.75. Price at Jan 22, 2010: $.90 Gain/Loss to date: +20%

14. Hemisphere GPS: Profile date: May 8, 2009. Price at profile date:
$1.22. Price at Jan 22, 2010: $1.09 Gain/Loss to date: -10.7%

15. International Datacasting: Profile Date August 28, 2009. Price at
profile date:
0.265. Price at Jan 22, 2010: .305 Gain/Loss to date: +15.1%

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DVC Smalltech Letter now up 32.6%

Cantech — Sun, 10 Jan 2010 19:36:37 +0000

The profiled companies of The DVC Smalltech Letter continued to post gains in the new year. This collection of small tech stocks is now up 32.6% while the TSX as a whole is down 1.5% over the same period (September 26th, 2008-Jan 8th, 2009). The DVC Smalltech Letter has gained 8.2% since Dec. 24th, 2009.

Underlying Data

1. Intrinysc Software: Profile date: September 26, 2008. Price at profile
date: $0.20. Price at Jan 8, 2010: $0.125 Gain/Loss to date: -37.5%

2. Carmanah Technologies: Profile date: October 6, 2008. Price at profile
date: $0.78. Price at Jan 8, 2010: $.84 Gain/Loss to date: +7.7%

3. Versatile Systems: Profile date: October 19th, 2008. Price at profile
date: $0.11. Price at Jan 8, 2010: $ .13 Gain/Loss to date: +18.2%

4. Jemtec Inc. Profile date: October 15th, 2008. Price at profile date:
$0.81. Price at Jan 8, 2010: $0.72 Gain/Loss to date: -11.1%

5. Tecsys Inc. Profile date: October 27th, 2008. Price at profile date:
$1.20. Price at Jan 8, 2010: $2 Gain/Loss to date: +66.7%

6. Matrikon Inc. Profile date: November 3rd, 2008. Price at profile date:
$2.10. Price at Jan 8, 2010: $3.15 Gain/Loss to date: +50%

7. Sierra Wireless: Profile date: November 10th, 2008. Price at profile
date: $9.50 Price at Jan. 8 2010: $12.87 Gain/Loss to date: +35.5%

8. Chartwell Technologies: Profile date: November 17th, 2008. Price at
profile date: $1.55. Price at Jan 8, 2010: $1.13 Gain/Loss to date:
-27.1%

9. Aastra Technologies: Profile date: November 24th, 2008. Price at
profile date: $8.94. Price at Close Coverage Date (June 4, 2009): $30.58
Gain/Loss: +242%

10. Serenic Corp: Profile date: December 1st, 2008. Price at profile date:
$0.245. Price at Jan 8, 2010: $0.47 Gain/Loss to date: +91.9%.

11. Glentel Inc. Profile date: January 5, 2009. Price at profile date:
$8.75. Price at Jan 8, 2010: $13.80 Gain/Loss to date: 57.7%

12. Miranda Technologies Inc. Profile date: January 19th, 2009. Price at
profile date: $6.99. Price at Jan 8, 2010: $5.11 Gain/Loss to date:
-26.9%

13. RDM Corp: Profile date: February 2, 2008. Price at profile date:
$0.75. Price at Jan 8, 2010: $.91 Gain/Loss to date: +21.3%

14. Hemisphere GPS: Profile date: May 8, 2009. Price at profile date:
$1.22. Price at Jan 8, 2010: $1.07 Gain/Loss to date: -12.3%

15. International Datacasting: Profile Date August 28, 2009. Price at
profile date:
0.265. Price at Jan 8, 2010: .30 Gain/Loss to date: +13.2%

DVC Smalltech Letter now up 24.4%

Cantech — Tue, 29 Dec 2009 19:07:13 +0000

The profiled companies of The DVC Smalltech Letter posted gains in December. This collection of small tech stocks is now up 24.4% while the TSX as a whole is down 3.2% over the same period (September 26th, 2008-Dec 24th, 2009). The DVC Smalltech Letter has gained 3.5% since November 27th, 2009.

DVC Smalltech Letter to Dec 24, 2009
Underlying Data

1. Intrinysc Software: Profile date: September 26, 2008. Price at profile
date: $0.20. Price at Dec. 24, 2009: $0.085 Gain/Loss to date: -57.5%

2. Carmanah Technologies: Profile date: October 6, 2008. Price at profile
date: $0.78. Price at Dec 24, 2009: $.80 Gain/Loss to date: +2.5%

3. Versatile Systems: Profile date: October 19th, 2008. Price at profile
date: $0.11. Price at Dec 24, 2009: $.10 Gain/Loss to date: -9.1%

4. Jemtec Inc. Profile date: October 15th, 2008. Price at profile date:
$0.81. Price at Dec 24, 2009: $0.71 Gain/Loss to date: -12.3%

5. Tecsys Inc. Profile date: October 27th, 2008. Price at profile date:
$1.20. Price at Dec 24, 2009: $2.18 Gain/Loss to date: +81.7%

6. Matrikon Inc. Profile date: November 3rd, 2008. Price at profile date:
$2.10. Price at Dec. 24, 2009: $2.86 Gain/Loss to date: +36.2%

7. Sierra Wireless: Profile date: November 10th, 2008. Price at profile
date: $9.50 Price at Dec. 24, 2009: $10.24 Gain/Loss to date:+7.8%

8. Chartwell Technologies: Profile date: November 17th, 2008. Price at
profile date: $1.55. Price at Dec 24, 2009: $1.15 Gain/Loss to date:
-25.8%

9. Aastra Technologies: Profile date: November 24th, 2008. Price at
profile date: $8.94. Price at Close Coverage Date (June 4, 2009): $30.58
Gain/Loss: +242%

10. Serenic Corp: Profile date: December 1st, 2008. Price at profile date:
$0.245. Price at Dec 24, 2009: $0.46 Gain/Loss to date: +87.8%.

11. Glentel Inc. Profile date: January 5, 2009. Price at profile date:
$8.75. Price at Dec 24, 2009: $13.50 Gain/Loss to date: 54.3%

12. Miranda Technologies Inc. Profile date: January 19th, 2009. Price at
profile date: $6.99. Price at Dec 24, 2009: $5.06 Gain/Loss to date:
-27.6%

13. RDM Corp: Profile date: February 2, 2008. Price at profile date:
$0.75. Price at Dec 24, 2009: $.88 Gain/Loss to date: +17.3%

14. Hemisphere GPS: Profile date: May 8, 2009. Price at profile date:
$1.22. Price at Dec. 24, 2009: $.88 Gain/Loss to date: -27.9%

15. International Datacasting: Profile Date August 28, 2009. Price at
profile date:
0.265. Price at Dec 24, 2009: .255 Gain/Loss to date: -3.8%

Caseridge Capital’s Top Picks for 2010

Cantech — Tue, 15 Dec 2009 17:00:48 +0000

Caseridge Capital released a special issue of its Caseridge Tecsys Dealbook today, unveiling The Caseridge Techsys “Top Picks” for 2010.
The Caseridge Techsys Index of Canadian listed technology and special situations companies is composed of 250 companies that represent a broad scope of activity across the technology, industrial, manufacturing, health care, software, internet and special situations sectors. Each year at this time Caseridge selects a subset of this broad index and names those companies to its “Top Picks” list for the up-coming year.

Caseridge Capital’s Top Picks represent those companies that are poised to significantly outperform the market over the coming year based on the predictive power of Caseridge’s proprietary GMM valuation technique. It is, in the view of Caseridge Capital, the definitive list of up-and-coming operating companies in the nation.

Accredited investors should perform their own analysis and conduct their own due diligence prior to making any investment or purchasing decisions. Non-accredited investors should consult with their personal financial planner for advice before making any investment decisions.

To view the Caseridge Top Picks for 2010 simply join the “Caseridge Tecsys Dealbook Network” at Linkedin.com.

Direct Link (Copy and Paste):

http://www.linkedin.com/groups?gid=1865639&trk=myg_ugrp_ovr

DVC Poll Results -November

Cantech — Fri, 27 Nov 2009 22:26:53 +0000

DVC recaps our poll results from the month of November. We tell you what you think will be 2009′s top performing Canadian tech stock, who should be the Canadian Tech Executive of the Year and more…

Poll Number One
Which will ultimately be the top performing Canadian tech stock of 2009?

1. Noveko (TSX:EKO) 34%
2. Wavefront (TSXV:WEE) 21%
3. Sensio (TSXV:SIO) 14%

Poll Number Two:
2009 has been a good year for most Canadian tech stocks, but not all. Which of these
laggards will finish strongest this year?

1. Unique Broadband Systems (TSX:UBS) 37%
2. Belzberg Technologies (TSX:BLZ) 20%
3. HTC Pure Energy (TSX:HTC) 14%

Poll Number Three
With mere weeks remaining in 2009, who is the Canadian Tech Executive of the Year?

1. Geoffrey Rotstein, Cyberplex (TSX:CX) 39%
2. Peter Allen, DragonWave (TSX:DWI) 18%
3. Tony Shen, Aastra (TSX:AAH) 4%

Poll Number Four
Which of the following TSX Cleantech stocks will post the largest percentage gain in
the next calender year?

1. Timminco (TSX:TIM) 29%
2. Day4Energy (TSX:DFE) 21%
2. Plutonic Power Corp. (TSX:PCC) 21%,

DVC Smalltech Letter, performance to Nov 27th, 2009

Cantech — Fri, 27 Nov 2009 22:26:04 +0000

The profiled companies of The DVC Smalltech Letter slipped in November. This collection of tech stocks is now up 20.9%, while the TSX as a whole is down 5.5% over the same period. (September 26th, 2008 to November 27th, 2009)

DVC Smalltech Letter to Nov. 27, 2009
Underlying Data

1. Intrinysc Software: Profile date: September 26, 2008. Price at profile
date: $0.20. Price at Nov. 27, 2009: $0.09 Gain/Loss to date: -55%

2. Carmanah Technologies: Profile date: October 6, 2008. Price at profile
date: $0.78. Price at Nov 27, 2009: $.81 Gain/Loss to date: +3.8%

3. Versatile Systems: Profile date: October 19th, 2008. Price at profile
date: $0.11. Price at Nov 27, 2009: $.115 Gain/Loss to date: +4.5%

4. Jemtec Inc. Profile date: October 15th, 2008. Price at profile date:
$0.81. Price at Nov 27, 2009: $0.64 Gain/Loss to date: -20.9.%

5. Tecsys Inc. Profile date: October 27th, 2008. Price at profile date:
$1.20. Price at Nov 27, 2009: $2.03 Gain/Loss to date: +69.2%

6. Matrikon Inc. Profile date: November 3rd, 2008. Price at profile date:
$2.10. Price at Nov. 27, 2009: $2.55 Gain/Loss to date: +21.4%

7. Sierra Wireless: Profile date: November 10th, 2008. Price at profile
date: $9.50 Price at Nov. 27, 2009: $9.23 Gain/Loss to date: -2.8%

8. Chartwell Technologies: Profile date: November 17th, 2008. Price at
profile date: $1.55. Price at Nov 27, 2009: $1.24 Gain/Loss to date:
-20%

9. Aastra Technologies: Profile date: November 24th, 2008. Price at
profile date: $8.94. Price at Close Coverage Date (June 4, 2009): $30.58
Gain/Loss: +242%

10. Serenic Corp: Profile date: December 1st, 2008. Price at profile date:
$0.245. Price at Nov 27, 2009: $0.37 Gain/Loss to date: +51%.

11. Glentel Inc. Profile date: January 5, 2009. Price at profile date:
$8.75. Price at Nov 27, 2009: $14.30 Gain/Loss to date: 63.4%

12. Miranda Technologies Inc. Profile date: January 19th, 2009. Price at
profile date: $6.99. Price at Nov 27, 2009: $5.53 Gain/Loss to date:
-20.8%

13. RDM Corp: Profile date: February 2, 2008. Price at profile date:
$0.75. Price at Nov 27, 2009: $.93 Gain/Loss to date: +24%

14. Hemisphere GPS: Profile date: May 8, 2009. Price at profile date:
$1.22. Price at Nov. 27, 2009: $.72 Gain/Loss to date: -40.9%

15. International Datacasting: Profile Date August 28, 2009. Price at
profile date:
0.265. Price at Nov 27, 2009: .25 Gain/Loss to date: -5.7%

Top Ten: Best Performing Canadian techs (so far) in 2009

Cantech — Wed, 28 Oct 2009 15:44:08 +0000

There's little doubt that Terry Matthew's is Canada's top tech hitmaker, but so far his DragonWave has only hit #2 on the charts

Top Ten: Best Performing Canadian techs (so far) in 2009

It’s been a year of sweet relief for many Canadian tech investors. While mining and metals continue to grab the vast majority of headlines here, the odd technology story has managed to sneak onto the front pages. A couple names, Sensio (TSX:SIO) and DragonWave (TSX:DWI) have seemingly carved out a home there this year. Those two companies are the class of this pack, each having a several hundred percentage point lead on the other eight. But the returns for the others are not too shabby. Even the number six company, for instance, Noveko (TSX:EKO) has posted a 330% gain. Our list looks at the top ten performing tech stocks so far this year, to Friday, October 23rd excluding those who began 2009 at less than a dime (sorry Armada Data, up 991%, Azure Dynamics, up 550%, and Maximizer, up 360%).

1. Sensio (TSXV:SIO) +1306%
2. DragonWave (TSX:DWI) +889%
3. Wavefront (TSXV:WEE) +393%
4. Angiotech (TSX:ANP) +350%
5. Bridgewater (TSX:BWC) +345%
6. Noveko (TSX:EKO) +330%
7. RedKnee (TSX:RKN) +285%
8. TransGaming (TSX:TNG) +284%
9. Cyberplex (TSX:CX) +282%
10. Softchoice (TSX:SO) +231%

1. Quebec’s Sensio (TSX:SIO), which makes technology to allow three dimensional playback on a variety of devices, including TV’s, spent the year in a mostly dormant mode. But on August 27th, they got the news they were looking for; a wide ranging patent approval of its technology and processes. The stock moved from .52 cents on August 10th, to $1.80 on September 11th. The stock closed at $2.11 on October 23rd.

2. It has been quite a year for Ottawa’s DragonWave (TSX:DWI), which makes carrier grade microwave sytems for wireless operators. The Company went from trading under a dollar on the TSX Venture Exchange to a full Nasdaq listing. Although it has leveled off of late, The stock has had a steady, dramatic run since April, buoyed by a jump in sales. Its Q2 2010 revenue number was $35.5-million, compared with $10.6-million for the same period in 2009. The stock closed at $9.49 on October 23rd.

3. As late as Labour Day, Alberta based Wavefront Technologies (TSX:WEE) was nowhere near this list. A string of sales of its Powerwave product, a technology that helps with oil well stimulation, secondary oil recovery and environmental groundwater remediation though, meant the stock surged from .61 cents on Sept. 1st to $2.26 on Oct. 5th. The stock closed at $2.39 on October 23rd.

4. Vancouver based biomed company Angiotech (TSX:ANP) rocketed in early May after an article in the Journal of the American College of Cardiology after Swedish patients showed improvement in restenosis, or the
renarrowing or arteries after percutaneous coronary intervention
(PCI).Angiotech continued to climb through June when the after it received FDA clearance for a filter used to prevent pulmonary artery blockages. The Company’s shares leveled off in July, but it had already locked in a several hundred percentage point gain. The stock closed at $1.62 on October 23rd.

5. Ottawa wireless innovator Bridgewater Systems (TSX:BWC) is the second company in the top ten to have telecom legend Terry Matthew’s fingerprints on it -Matthews is Bridgewater’s Chairman- and with the way Bridgewater has been earnings new business (the company recently announced $18.8 million in new orders from Verizon) the company may challenge DragonWave by year end. The stock closed at $9.35 on October 23rd.

6. When the world changes, for better or for worse, the stock market also changes. No one knows this better than shareholders of Montreal based Noveko (TSX:EKO) which is a developer of germ-killing medical masks. On Dec. 31st the shareholders were holding .60 cent stock. The came the swine flu and the media barrage that accompanied it. The scare has translated into real sales for Noveko, whose masks were proven effective by and independent lab. Noveko closed at $2.58 on October 23rd.

7.Mississauga based Redknee(TSX:RKN), whose software products allow wireless and wire line operators to monetize the value of subscriber transactions, took off in April after signing a billing solution to Bahrain based Bintel. Subsequently, The Company’s numbers improved; Q3 2009 revenue was up 21%. The stock closed at $1.06 on October 23rd.

8. It was a small amount, $500K, but the investment Intel Capital made into Toronto based TransGaming (TSX:TNG) was all the endorsement investors needed to buy up the share of this company. Transgaming, which makes software that allows games to be played work across different platforms, has also made a late run, having closed August at .34 cents. Transgaming closed October 23rd at .73 cents.

9. There was no mystery to Toronto’s Cyberplex‘s, which provides online advertising solutions, rise in March. The Company blew away it’s previous numbers; posting revenue of $57.3-million, which was an increase of 225 per cent over the $17.7-million The Company reported for 2007. The stock closed October 23rd at $1.30.

10. A late surge by Toronto’s Softchoice, which makes business to business and IT infrastructure products, snuck The Company into the top ten. Despite suffering a downturn in revenue (a -17% hit in the second quarter), corporate belt tightening and a favorable exchange rate meant The Company delivered a 71% increase in Q2 profit. The stock closed at $8 on October 23rd.

Quant Snapshot Update, Intrinsyc (TSX:ICS)

Cantech — Wed, 28 Oct 2009 15:43:28 +0000

Quant Snapshot
Intrinsyc (TSX:ICS)

1. Price to sales: 0.78

As of June 30th, 2009 (Q2) Intrinsyc had 163,254,903 million shares outstanding.The
price as of October 23rd, 2009 was $0.11 This gives The Company a market
capitalization of $17.93 million. In the trailing four quarters, sales totaled
$22.88 million.

2. Cash to Market Cap: 59%

As of Q2 2009 reported cash and short term investments was $10.6 million. Market
Cap, as of October 23rd was $17.93 million.

3. Debt to market Cap: $0.01

As of Q3 2009 reported long term debt was $2,000

4. Trailing Three year growth rate: -23.5

Intrinsyc’s sales were $21.57 Million in 2005. They fell to 12.39 Million in 2008.

5. Enterprise Value to Sales: 32.1%

Enterprise Value as of October 23rd, 2009 is $7.35 million, based on a market
cap of $17.93 million plus $2,000 long term debt , minus cash
and short term investments of of $10.6 million. Sales for the trailing four quarters
totaled $22.88 million.

All financial information about Intrinsyc Software is gleaned from
their filings with the System for Electronic Document Analysis and
Retrieval (SEDAR)
All calculations are based on The Company’s closing share price as of
close October 23rd, 2009: $0.11
Sales from trailing four quarters: $22.88 million
Cash and short term investments as of June 30, 2009 (3rd Quarter)
: $10.60 million
Shares outstanding: 163,254,903 million.

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