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Friday 31 January 2014

The "small cap" technology plan

Some time ago I was in Barrie to do research on materials I needed for an upcoming court case.I found a couple of technical magazines and got two different lists of the  fastest growing companies over the last five years.I have used them to be added to other companies-companies that have already been listed on the T.S.X .I have found that if you take the ten fastest growing companies in the last year only one or maybe two will last another two or three years.So if they don't accept my offer to sell their shares at a reasonable price they may not survive.My offer gives them a much better chance of thriving in five years as well as some cash.
 A spree of buying
 About three months ago I bought a bunch of shares for three or four "small cap" companies listed on the T.S.X.These companies acquiring shares included Tecsys,Heroux-Devtek,Mediagrif,and Tucows.All rose on the original purchases but only ones that gained real synergies will stay at these levels.This does however force the acquiring company to look at new ways of doing business.Some like Heroux-Devtek will have new and useful resources.Others not as much.Changes will continue until the right mix of new companies goes with the companies acquiring them.
       Five hot junior stocks
  My last list of five young companies all showed growth rates of 25% to 300% annual growth.Logistec was given new resources in the north and will get more.It's stock price has benefited from the new resources and additional attention it has received.Construction Control has been added at first to the almost stagnant Intrinsyc Software as has Evoco.But this was only a move to show that they "are in play".Both companies have very high annual growth rates and will have to make asjustments.The adjustments have already started. However now their shares have been moved largely to Tecsys which is a far better fit.Tecsys should be able to give some useful advice on growing and eventually getting listed.Another of these five new ones is Vixs Systems.I arranged for Mediagrif  to get some equity in order to get them more "seed money".I am not sure what happened to this relationship but now Vixs has been listed and has moved up in price just like Logistec.It is likely that Mediagrif still has a small stake here yet.The last company on my list is called Global Relay and it has not been "in play" yet but it will be.I have seen no news on it recently but I think it may fit with Intrinsyc Software after Tucows has purchased another tranche of shares of Intrinsyc.  send comments on consulting advice on "small cap" companies to workathon

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