Mark Thierer of Catamaran Corp. Cantor Fitzgerald analyst Tom Liston says the company is his choice for 2012 Canadian Tech Stock of the Year. Ask ten people on the street -any street- if the name Catamaran Corp. rings a bell. From Toronto to Truro, you’ll get silence nine times out of ten, at least. Refer to the company by its former name, SXC Health and you’ll hear the same sound. Perhaps this illustrates the state of Canadian tech more clearly than anything else.
The fact is, Catamaran should be a household name in Canada.
Catamaran’s trajectory is simply unparalleled in the recent history of Canadian tech. As late as 2004 the Milton, Ontario-based company was plodding along more than a decade after it was founded with just $33 million in revenue. There was no big, splashy Bay Street IPO; the company went public in a reverse takeover of a publicly listed shell, allowing it to raise a relatively meager $10 million in 1997. Today, the company is a major US Pharmacy Benefit Management Player, and its recent Q3 revenue of $3.2 billion shows it is maintaining the momentum that won it top spot in Fortune Magazine’s 2011 100 fastest-growing companies list, an honor Research in Motion took home in 2009, incidentally.
Cantor Fitzgerald analyst Tom Liston says Catamaran is his choice for 2012 TSX Tech Stock of the Year. Here are the rest of his choices.
Tom Liston, 2012 TSX Tech Stock of the Year
1. Catamaran (TSX:CCT) – it is very rare for a $10 billion market cap company to post a 72% return year to date after posting a 557% return the prior three years, but CCT is certainly unique and taking the PBM market by storm. Its acquisition of Catalyst Health puts in directly in the sights of the “Big Two” and CCT is poised to continue to gain significant share of the market.
2. Avigilon (TSX:AVO) – hard to argue not having AVO in the top three. Its 188% year-to-date makes puts it in the top of our database. After a lackluster IPO, the company has now been properly recognized by the street for the opportunity set in the analog to high definition digital surveillance system conversion trends.
3. Redline Communications (TSX:RDL) – at the lower end of the market cap spectrum, Redline has posted an impressive turnaround which has led to a 90% year to date return. With partners like Cisco Systems (CSCO-Q) helping to drive deals, we expect another strong year of results.
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Tom Liston, 2012 TSX Canadian Tech Executive of the Year
1. Mark Thierer, Catamaran Corp. (TSX:CCT) – Mr. Thierer pulls off the most impressive deal of the year, acquiring Catalyst Health. The company also recorded several marquee wins including Target Corp. (TGT-NYSE) and Blue Cross Blue Shield of Rhode Island.
2. Mark Leonard, Constellation Software (TSX:CSU) While Mr. Leonard will be the first to point to CSU’s success being a complete team effort, it’s his leadership and business model discipline which has lead to another year of strong performance. The company boasts a 10 year cash flow per share CAGR of 30%. CSU shares have followed suit, up 59% year to date.
3. Art Mesher, Descartes Systems Group (TSX:DSG) His share price (up 15% year to date) has not caught up to its fundamentals this year so far, the company has performed above expectations. Large deal wins include: Brinks International, Performance Food Group, Chubb, and Herbalife. The company has also made a couple highly strategic acquisitions as well as expanded its partnership with SAP (SAP-NYSE).