Caseridge Capital Corporation

TECHNOLOGY & SPECIAL SITUATIONS REVIEW: MARCH 2, 2010

Caseridge Capital Corporation

Caseridge TechSys DealBook March 9, 2010

www.caseridge.com


1 First Canadian Place,

100 King Street West, Suite 5700

Toronto, Ontario M5X 1C7

T 416-915-4142 F 416-915-3177

Caseridge Capital Corporation 100 King Street West, Suite 5700, Toronto, M5X 1C7

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Caseridge TechSys DealBook March 9, 2010

Contents CASERIDGE TECHSYS COMMENTARY.......................................................................................................... 3

THE CASERIDGE TECHSYS DEALBOOK NETWORK .................................................................................... 5

PERFORMANCE UPDATE: CASERIDGE TOP PICKS LIST 2010: .................................................................... 6 CASERIDGE TOP PICKS LIST 2010 ..................................................................................................................................................... 6 RECENT ANALYST ESTIMATE CHANGES (TOP PICKS LIST: 2010) .................................................................................................... 7

DOWNWARD REVISION ............................................................................................................................................................................................ 7 MOSAID TECHNOLOGIES INC. (TSX:MSD) ........................................................................................................................................................... 7 UPWARD REVISION .................................................................................................................................................................................................. 7 MOSAID TECHNOLOGIES INC. (TSX:MSD) ........................................................................................................................................................... 7 INITIATION OF COVERAGE ........................................................................................................................................................................................ 7 WI-LAN INC. (TSX:WIN) ......................................................................................................................................................................................... 7 DOWNWARD REVISION ............................................................................................................................................................................................ 7 HEMISPHERE GPS INC (TSX:HEM) ....................................................................................................................................................................... 7 UPWARD REVISION .................................................................................................................................................................................................. 7 HEMISPHERE GPS INC (TSX:HEM) ....................................................................................................................................................................... 7 DOWNWARD REVISION ............................................................................................................................................................................................ 7 INTERMAP TECHNOLOGIES CORP. (TSX:IMP) ........................................................................................................................................................ 7 DOWNWARD REVISION ............................................................................................................................................................................................ 7 MARCH NETWORKS CORPORATION (TSX:MN) ....................................................................................................................................................... 7 UPWARD REVISION .................................................................................................................................................................................................. 7 EXFO ELECTRO OPTICAL ENGINEERING INC. (TSX:EXF) ..................................................................................................................................... 7 DOWNWARD REVISION ............................................................................................................................................................................................ 7 MIRANDA TECHNOLOGIES INC. (TSX:MT) ............................................................................................................................................................... 7 UPWARD REVISION .................................................................................................................................................................................................. 7 MIRANDA TECHNOLOGIES INC. (TSX:MT) ............................................................................................................................................................... 7 DOWNWARD REVISION ............................................................................................................................................................................................ 7 MIRANDA TECHNOLOGIES INC. (TSX:MT) ............................................................................................................................................................... 7 CASERIDGE TECHSYS INDEX COMPONENT SUMMARY AS AT MARCH 5, 2010 ......................................................................................................... 8

MARKET SENTIMENT CASERIDGE TECHSYS UNIVERSE ......................................................................................................... 9 BULLISH SENTIMENT CONTINUED ITS DECLINE DROPPING TO 32%, THE LOWEST LEVEL SINCE MID-DECEMBER. ..................................................... 9

CASERIDGE GMM TRACKING AND GP GROWTH TRENDS ........................................................................................................... 10 THE GROSS MARGIN MULTIPLE (IN PURPLE) (“GMM”) STAYED FLAT AT 1.31 IN THE LAST WEEK. THE HIGH VALUE OF THIS MULTIPLE CONTINUES TO BE A

CONCERN. ............................................................................................................................................................................................................. 10

CASERIDGE CANADIAN TECHSYS CAPITAL MARKET SUMMARY (LAST 3 MONTHS) .......................... 11

WEEKLY EVENTS CALENDAR FOR THE WEEK ENDING MARCH 5, 2010 .................................................. 14 BENNETT ENVIRONMENTAL INC. (TSX:BEV) ........................................................................................................................................................ 14 CANGENE CORP. (TSX:CNJ) ............................................................................................................................................................................... 14 ENGHOUSE SYSTEMS LTD. (TSX:ESL) ................................................................................................................................................................ 14 VECTOR AEROSPACE CORPORATION (TSX:RNO)................................................................................................................................................ 14 XENOS GROUP INC. (TSX:XNS) ........................................................................................................................................................................... 14 ARISE TECHNOLOGIES CORP. (TSX:APV) .......................................................................................................................................................... 14 INSCAPE CORP. (TSX:INQ) ............................................................................................................................................................................... 14 STANTEC INC. (TSX:STN) .................................................................................................................................................................................... 14 SXC HEALTH SOLUTIONS, CORP. (TSX:SXC) ..................................................................................................................................................... 14 BRIDGEWATER SYSTEMS CORPORATION (TSX:BWC) ......................................................................................................................................... 14 TRANSITION THERAPEUTICS INC. (TSX:TTH) ....................................................................................................................................................... 14 MDC PARTNERS INC. (TSX:MDZ.A) .................................................................................................................................................................... 14 ENGHOUSE SYSTEMS LTD. (TSX:ESL) ................................................................................................................................................................ 14 WESTAIM CORP. (TSX:WED) ............................................................................................................................................................................... 14 ENGHOUSE SYSTEMS LTD. (TSX:ESL) ................................................................................................................................................................ 14

http://adamou.workspace.office.live.com/Docs/Caseridge%20TechSys%20DealBook%20March%209%202010.docx#_Toc255657956



[email protected] P: 416-915-4142 F: 416-915-3177 2

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ROCKY MOUNTAIN DEALERSHIPS, INC. (TSX:RME) ............................................................................................................................................. 14 LABOPHARM INC. (TSX:DDS) ............................................................................................................................................................................... 14 EASYHOME LTD. (TSX:EH) ................................................................................................................................................................................... 14 ENWAVE CORP. (TSXV:ENW) ............................................................................................................................................................................ 14 ROCKY MOUNTAIN DEALERSHIPS, INC. (TSX:RME) ............................................................................................................................................. 14 BALLARD POWER SYSTEMS INC. (TSX:BLD) ........................................................................................................................................................ 14 CARMANAH TECHNOLOGIES CORP. (TSX:CMH) .................................................................................................................................................. 14 DESCARTES SYSTEMS GROUP INC. (TSX:DSG) .................................................................................................................................................. 14 DESCARTES SYSTEMS GROUP INC. (TSX:DSG) .................................................................................................................................................. 14 REDKNEE SOLUTIONS, INC. (TSX:RKN) ............................................................................................................................................................... 14 EASYHOME LTD. (TSX:EH) ................................................................................................................................................................................... 14 DESCARTES SYSTEMS GROUP INC. (TSX:DSG) .................................................................................................................................................. 14 TOTAL ENERGY SERVICES INC. (TSX:TOT) ......................................................................................................................................................... 14 PNI DIGITAL MEDIA INC. (TSXV:PN) .................................................................................................................................................................... 14 HAMMOND POWER SOLUTIONS INC. (TSX:HPS.A) .............................................................................................................................................. 14 ACTIVE CONTROL TECHNOLOGY, INC. (TSXV:ACT) ............................................................................................................................................ 14 PETHEALTH INC. (TSX:PTZ) ................................................................................................................................................................................. 14 POINTS INTERNATIONAL LTD. (TSX:PTS) ............................................................................................................................................................. 14 POINTS INTERNATIONAL LTD. (TSX:PTS) ............................................................................................................................................................. 14 SMTC CORP. (NASDAQGM:SMTX) ..................................................................................................................................................................... 14 WATERFURNACE RENEWABLE ENERGY, INC. (TSX:WFI) .................................................................................................................................... 14 COM DEV INTERNATIONAL LTD. (TSX:CDV) ...................................................................................................................................................... 14 COM DEV INTERNATIONAL LTD. (TSX:CDV) ...................................................................................................................................................... 14 IWEB GROUP INC. (TSXV:IWB) ........................................................................................................................................................................... 14 NORSAT INTERNATIONAL INC. (TSX:NII) ............................................................................................................................................................... 15 PROSEP INC. (TSX:PRP) ..................................................................................................................................................................................... 15 DESCARTES SYSTEMS GROUP INC. (TSX:DSG) .................................................................................................................................................. 15 PROSEP INC. (TSX:PRP) ..................................................................................................................................................................................... 15 AG GROWTH INTERNATIONAL INC. (TSX:AFN) ..................................................................................................................................................... 15 ZCL COMPOSITES INC. (TSX:ZCL) ...................................................................................................................................................................... 15 BALLARD POWER SYSTEMS INC. (TSX:BLD) ........................................................................................................................................................ 15 DESCARTES SYSTEMS GROUP INC. (TSX:DSG) .................................................................................................................................................. 15 PETHEALTH INC. (TSX:PTZ) ................................................................................................................................................................................. 15 ZCL COMPOSITES INC. (TSX:ZCL) ...................................................................................................................................................................... 15 NORSAT INTERNATIONAL INC. (TSX:NII) ............................................................................................................................................................... 15 DESCARTES SYSTEMS GROUP INC. (TSX:DSG) .................................................................................................................................................. 15 AG GROWTH INTERNATIONAL INC. (TSX:AFN) ..................................................................................................................................................... 15 WATERFURNACE RENEWABLE ENERGY, INC. (TSX:WFI) .................................................................................................................................... 15 PULSE SEISMIC INC. (TSX:PSD) .......................................................................................................................................................................... 15 MCCOY CORP. (TSX:MCB) ................................................................................................................................................................................. 15 COMMERCIAL SOLUTIONS INC. (TSX:CSA) .......................................................................................................................................................... 15 MCCOY CORP. (TSX:MCB) ................................................................................................................................................................................. 15


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Caseridge TechSys Commentary

How Research in Motion Did It:

I was fortunate enough to have a copy of Rod McQueen’s biographic account of the development of

Research In Motion, Blackberry: The Inside Story of Research in Motion delivered to me recently. I

congratulate McQueen on his diligence and his behind the scenes access. The events that conspired to

make RIM a success are well worth reading and I’m surprised that it took this long for a book on one of

the greatest Canadian success stories of all time to be published. Having read through the book the

bottom line is that this is a book that should be picked up and devoured by C-level executives in small

and medium sized technology companies across the country. It’s the kind of book that should be leafed

over, full of post-it notes, scribbles in the corners and bent over pages with notes in the margins once

your finished with it, at least if you take your success seriously. In fact, you should pick up a second and

third copy and hand them to some of your division heads as well.

Some of the initial reviews of the book have focused on what the book is not, and that’s unfortunate. This

is not a book for people looking for dirt or for scandles or who have other negative agendas. It is a story

about a bunch of guys who did what they needed to do to succeed, and they succeeded beyond

anybodies’ expectations, except perhaps their own. It focuses on the actions taken that eventually led to

their success and how they overcame their challenges. If you want to focus on the negative, this book is

not for you.

For small companies this book is important because it is the most accurate behind the scenes account of

the struggles that RIM faced at the early stages of development within the Canadian financing

environment. RIM raised money through founders shares, they raised money through the hiring process

(there’s a great story in the book about what happened to Jim Balsillie’s initial investment), they raised

money through their employees, they raised money from strategic partners, they borrowed against

working capital lines and against their mortgages – and all of this before they completed their first

venture round of financing. Their perserverence, and their “do what needs to be done” attitude, which

can be described fearless, should prove comforting and inspirational to every entrepreneur and CEO in

this country.

Second, this book highlights the hybrid nature of the Canadian venture capital industry; RIM is the

perfect example of the value that the public markets can bring to smart, prepared and persistant

entrepreneurs. Venture capitalists and portfolio managers should take note that the traditional rules of

venture capital were broken to accommodate RIM’s needs. RIM was just weeks away from a bank forced

shut down of their business through a liquidation of their inventory. They talked to traditional VC’s

about raising private equity without luck. They survived only because they landed in the hands of the

right investment banking boutique partnered with the right venture capitalist combined with a group of

public equity mutual funds and an adequate system of securities rules. I don’t believe that there was any

doubt that RIM was onto something at the time, unfortunately the traditional VCs were looking to the

deal – in particular they were looking to juice their returns by taking advantage of RIMs financial

difficulties by putting together complicated, and one sided, agreements. GMP and the group of investors

that took eventually took the leap into the RIM realized that there wasn’t going to be anything for any of

us if we allowed this opportunity to get away because of we didn’t negotiate a proper “put-call”

provision. In the end, I truly believe that it was the freedom to operate without fear that set the stage for

RIM’s initial success.


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Finally, RIM established a culture that was based on a very strong work ethic coupled with a hiring

practice that consisted of bringing on younger, highly intelligent people, giving them the space they

needed to find their own answers. Because of this, they were able to hire some of the best and smartest

people in the country even within a limited budget by selling them on the future of the company and the

payoff from their combined success. Thus was born “millionaires row”. They also stayed very active in

the community and on the college campuses while remaining trade associations, corporate activism and

industry events.

I can’t say enough about the importance of getting an inside look of this company. The book is a must

read. Pick it up.

We hope that you enjoy this weeks’ Caseridge TechSys DealBook.

Adam E. Adamou [email protected]

mailto:[email protected]


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The Caseridge TechSys DealBook Network

Caseridge has expanded the TechSys DealBook via the Caseridge TechSys DealBook

Network on LinkedIn. Since going “live” the Caseridge TechSys DealBook Network has grown to one of

the largest targeted network of industry professionals in Canada. If you are looking for connections with

those that are connected, this is the perfect venue for you.

Caseridge is also active on twitter with real time updates on changes to the

market, news releases and changes in target recommendations. You can follow our feed on twitter at

http://twitter.com/caseridge.

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

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

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

http://twitter.com/caseridge

http://www.linkedin.com/home?goback=.anh_1865639.and_1865639_4458650_*2_*2.anh_1865639&trk=hb_logo

http://twitter.com/home


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Performance Update: Caseridge Top Picks List 2010:

In the comprehensive list, the Caseridge Top Picks was flat on the week gaining just 0.03% on an equal

weighted basis with a YTD gain of 6.14%. Street Analysts sharpened their pencils to downgrade their

targets on MN and MT. We revised our GMM target prices for ABT and IMP.

Caseridge Top Picks List 2010

Company Name Ticker Recent

Price GMM Target

“Consensus”

Target** % Change [1-

Week % Change [YTD]

C-Com Satellite Systems Inc. † TSXV:CMI $ 0.32 $0.70 ► NA 6.67 (1.54)

MOSAID Technologies Inc. TSX:MSD $ 23.28 $ 30.00► $25.95► 5.63 29.29

Hemisphere GPS Inc. † TSX:HEM $ 0.91 $1.40► $1.23► 4.60 7.06

Wi-Lan Inc. TSX:WIN $ 3.01 $3.00► $4.18► 4.51 14.45

Constellation Software Inc. TSX:CSU $ 41.70 $50.00► $38.24► 4.25 13.47

EXFO Inc. TSX:EXF $ 6.00 $8.00► $4.99► 3.81 48.88

Serenic Corp. TSXV:SER $ 0.40 $ 1.20► NA 2.56 (13.04)

Sierra Wireless Inc. † TSX:SW $ 8.68 $15.00► 11.68► 1.39 (21.47)

BIOREM Inc. TSXV:BRM $ 0.81 $2.00► NA 1.25 52.83

Glentel Inc. TSX:GLN $ 15.65 $25.00► 18.00► 1.23 16.79

Vecima Networks Inc. TSX:VCM $ 6.88 $7.00► $9.13► 1.18 18.62

Computer Modelling Group Ltd. † TSX:CMG $ 16.85 $20.00► $17.20► 0.60 12.03

RuggedCom Inc. TSX:RCM $ 20.71 $ 25.00► $ 23.51► 0.53 15.31

Cangene Corp. † TSX:CNJ $ 5.25 $9.00► $10.00► 0.00 2.94

Vector Aerospace Corporation TSX:RNO $ 6.34 $10.00► $8.68► 0.00 3.93

Aastra Technologies Ltd. † TSX:AAH $ 33.00 $50.00► $41.61► (0.24) (4.76)

March Networks Corporation † TSX:MN $ 3.88 $ 9.00► $5.63▼ (0.51) (3.00)

Icron Technologies Corp. TSXV:IT $ 0.42 $1.00► NA (1.18) 31.25

Carmanah Technologies Corp. † TSX:CMH $ 0.70 $1.20► $1.23► (1.41) (15.66)

Absolute Software Corporation† TSX:ABT $ 6.20 $ 7.00▲ $ 6.82► (1.74) 18.10

Miranda Technologies Inc. † TSX:MT $ 4.65 $10.00► $6.26▼ (1.90) (13.89)

Wireless Matrix Corp. † TSX:WRX $ 0.97 $ 2.00► $1.54► (2.02) (4.90)

Enghouse Systems Ltd. † TSX:ESL $ 7.93 $12.00► $8.00► (2.10) (7.79)

Descartes Systems Group Inc. † TSX:DSG $ 6.33 $7.50► $6.27► (3.06) 0.16

Intermap Technologies Corp. † TSX:IMP $ 1.55 $2.90▼ $4.18► (3.13) (14.84)

20-20 Technologies Inc. TSX:TWT $ 3.00 $ 5.00► $2.94► (6.25) (1.64)

CriticalControl Solutions Corp. † TSX:CCZ $ 0.75 $ 1.50► NA (6.25) (8.54)

Radiant Communications Corp. † TSXV:RCN $ 1.05 $ 3.00► $1.58► (8.70) 5.00

AVERAGE 0.03% 6.39%

*As of previous week’s stock market close NA = Not Any UR Under Review ** ACQUIRED

† Indicates that Caseridge employees or members of their family own or beneficially control shares in the specified companies. These consensus target prices are based on the target prices of a sample of analysts that we track and we do not necessarily track all of the analysts in the coverage universe On a value weighted basis the Top Picks gained 3.89% over the last month versus a gain of 4.54% for the full TechSys universe and gains of about 1% to 2% for the broader benchmarks. The Caseridge TechSys Top Picks and the Caseridge Techsys Universe are up by 108% and 126% ver the last twelve months:

Market View Last Month Return (%) Relative Performance vs. the Top Picks

LTM Return (%) Relative Performance

Caseridge 2010 Top Picks 3.89 NA 108.01 NA

BENCHMARKS

Canadian TechSys Universe 4.54 +0.65% 125.81 +17.80%

S&P/TSX Composite Index 1.27 -2.62% 56.97 -51.04%

Russell 2000 Index 2.08 -1.81% 90.59 -17.42%

https://www.capitaliq.com/CIQDotNet/company.aspx?companyId=2671800

https://www.capitaliq.com/CIQDotNet/company.aspx?companyId=2667223


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Recent Analyst Estimate Changes (Top Picks List: 2010)

Recent Estimate Changes

Confirm Date Company Name Broker Data Point Period Prior

Consensus Current

Consensus

Mar-04-2010 Downward

Revision

MOSAID Technologies Inc. (TSX:MSD) Cormark Securities Inc.

Revenue FQ4 2010

18.93 18.33

Mar-04-2010 Upward

Revision

MOSAID Technologies Inc. (TSX:MSD) Cormark Securities Inc.

Revenue FY 2010 69.30 69.44


Revision

MOSAID Technologies Inc. (TSX:MSD) CIBC World Markets Inc.

Revenue FQ4 2010

18.93 18.33


Revision

MOSAID Technologies Inc. (TSX:MSD) CIBC World Markets Inc.

Revenue FY 2010 69.30 69.44

Mar-03-2010 Upward

Revision

MOSAID Technologies Inc. (TSX:MSD) BMO Capital Markets, Canadian Equity

Research

Revenue FY 2010 69.30 69.44

Feb-28-2010 Initiation of

Coverage

Wi-Lan Inc. (TSX:WIN) CIBC World Markets Inc.

Revenue FQ1 2010

11.50 10.00

Feb-28-2010 Initiation of

Coverage

Wi-Lan Inc. (TSX:WIN) CIBC World Markets Inc.

Revenue FY 2010 47.11 46.33

Feb-26-2010 Downward

Revision

Hemisphere GPS Inc (TSX:HEM) Paradigm Capital, Inc. Revenue FQ4 2009

10.62 10.44


Revision

Hemisphere GPS Inc (TSX:HEM) Paradigm Capital, Inc. Revenue FY 2009 52.01 51.84

Feb-26-2010 Upward

Revision

Hemisphere GPS Inc (TSX:HEM) Fraser Mackenzie Limited

Revenue FQ4 2009

10.62 10.44


Revision

Intermap Technologies Corp. (TSX:IMP) Canaccord Adams Revenue FY 2010 36.70 35.08


Revision

March Networks Corporation (TSX:MN) RBC Capital Markets Revenue FQ4 2010

22.90 21.47


Revision

March Networks Corporation (TSX:MN) RBC Capital Markets Revenue FY 2010 88.57 86.60


Revision

March Networks Corporation (TSX:MN) CIBC World Markets Inc.

Revenue FQ4 2010

22.90 21.47


Revision

March Networks Corporation (TSX:MN) CIBC World Markets Inc.

Revenue FY 2010 88.57 86.60


Revision

March Networks Corporation (TSX:MN) BMO Capital Markets, Canadian Equity

Research

Revenue FQ4 2010

22.90 21.47


Revision

March Networks Corporation (TSX:MN) BMO Capital Markets, Canadian Equity

Research

Revenue FY 2010 88.57 86.60


Revision

March Networks Corporation (TSX:MN) Salman Partners Inc. Revenue FY 2010 88.57 86.60

Feb-25-2010 Upward

Revision

EXFO Electro Optical Engineering Inc.

(TSX:EXF)

GMP Securities, Ltd. Revenue FQ2 2010

49.66 49.84

Feb-25-2010 Upward

Revision

EXFO Electro Optical Engineering Inc.

(TSX:EXF)

GMP Securities, Ltd. Revenue FY 2010 198.07 199.42


Revision

Miranda Technologies Inc. (TSX:MT) Genuity Capital Markets

Revenue FQ1 2010

32.75 32.25

Feb-25-2010 Upward

Revision

Miranda Technologies Inc. (TSX:MT) Genuity Capital Markets

Revenue FY 2010 141.68 141.79

Feb-25-2010 Upward

Revision

Miranda Technologies Inc. (TSX:MT) Scotia Capital Revenue FQ1 2010

32.75 32.25

Feb-25-2010 Upward

Revision

Miranda Technologies Inc. (TSX:MT) Scotia Capital Revenue FY 2010 141.68 141.79


Revision

Miranda Technologies Inc. (TSX:MT) Cormark Securities Inc.

Revenue FQ1 2010

32.75 32.25


Revision

Miranda Technologies Inc. (TSX:MT) Cormark Securities Inc.

Revenue FY 2010 141.68 141.79


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Caseridge TechSys Index Component Summary as at March 5, 2010

Caseridge TechSys Universe Summary of Component Companies

Companies in Universe: 250

(Equal Weighted) Figures are LTM on a Rolling Basis (except as noted)

Avg. Market Cap: $141,272 ▲ (1.37%)

Average Date of the Trailing Financials October 25, 2009 ▲(4 days)

Avg. Cash: 22,941 ▲ (0.37%)

Avg. Debt: 44,915▼ (3.62%) Avg. Enterprise Value: 161,951 ▲ (0.09%)

Avg. Revenue: 119,480 ▼ (0.23%)

Avg. Gross Profit 38,983 ▼ (0.33%)

Avg. Cash Flow: 3,891▲ (1.22%)

Gross Margin %: 44.17 ▼ (0.05%)

Gross Profit Growth Rate 2.41% ▼ (10.26%)

VALUATION

EV/Revenue 1.86▲

EV/Gross Profit 4.26▲

Gross Margin Multiple (LQA) 1.31▼

Price/Cash Flow: 14.15▼

Notes: 1 All figures are based on value weighted averages, excluding the high/low outliers.

2 Percentages and Multiples are based on the averages of the individual components and not on the averages of the global numbers.

3 Note that the universe is not static and changes over time.

4 “Cash Flow” is CGBO before working capital changes.

5 Individual GMM figures are capped at 3X for the purposes of calculating the global GMM.

6 All dollar figures are in Canadian dollars and in thousands.


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MARKET SENTIMENT CASERIDGE TECHSYS UNIVERSE

20%

9%10%

14%

11% 11%

7%

9%

11%

13%

10%

15%

18%

20%

35%

48%

29%

31%

38%

43%

33%34%

38% 40%

36%

32%

59%

56%

42%

57%58%

52%

50%

57%

55%

49%

50%

49%

50%

1-Mar-09 1-Apr-09 1-May-09 1-Jun-09 1-Jul-09 1-Aug-09 1-Sep-09 1-Oct-09 1-Nov-09 1-Dec-09 1-Jan-10 1-Feb-10 1-Mar-10

Bullish sentiment continued its decline dropping to 32%, the lowest level since mid-December. Neutral

sentiment bumped up to 50% at the 24-week average while Bearish sentiment continues to grow hitting 18%, a

level last seen in March of 2009.


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Caseridge GMM Tracking and GP Growth Trends

4.37%

7.19%

4.53%

-2.64%

-10.09%

-5.57%

-8.05%

-7.46%

-4.71%

-5.66%

-3.17%

3.05%

3.21%

1.28

1.21

1.14

1.22

1.12

0.98

0.87 0.88

0.90

0.90 0.90

0.96

1.10

1.13

1.13

1.22 1.23

1.26

1.24

1.26

1.31

0.99

0.96

1.02

1.05

1.06 1.08

1.09

0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

1.4

-0.12

-0.1

-0.08

-0.06

-0.04

-0.02

0

0.02

0.04

0.06

0.08

0.1

LQA/LTM

GMM

NQA GMM

The Gross Margin Multiple (in purple) (“GMM”) stayed flat at 1.31 in the last week. The high value of this multiple

continues to be a concern. The NQA GMM which is based on analyst consensus estimates for gross profits in the “next quarter”

increased to 1.09 from 1.08 last week. The annualized Gross Profit Growth rates (in yellow) continues to grow increasing to

3.21% as at an average date of the trailing financials of October 25, 2009 versus a loss of 3.17% as at September 25th. This

indicator is based on a “run rate” measured as LQA gross profits / LTM gross profits. We are hopeful that greater gross profit

growth rates will lead to a decline in GMM multiples over the next month.


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Caseridge Canadian TechSys Capital Market Summary (Last 3 Months)

Recent Transaction Statistics

Announced Deals by Sector in the Past Year (LTM)

Announced Transactions by Region in the Past Year (LTM)

Merger/Acquisition Transactions (Last 3 Months)

Announced Date Closed Date Target Buyer/Investors Size

($mm)

Mar-3-2010 Mar-3-2010 Eli Lilly & Co., Rights to Series of Preclinical Compounds

Transition Therapeutics Inc. (TSX:TTH) 1.00

Mar-2-2010 - Actiontop Electronics (ShenZhen) Co., Ltd.

Cantronic Systems, Inc. (TSXV:CTS) 3.71

Mar-2-2010 Mar-2-2010 Gladstone plc (AIM:GLD) Constellation Software Inc. (TSX:CSU) 3.24

Mar-2-2010 - Gladstone plc (AIM:GLD) Constellation Software Inc. (TSX:CSU) 13.45

Mar-2-2010 Mar-2-2010 Thompson Rosemount Group Inc. GENIVAR Income Fund (TSX:GNV.UN)

-

Mar-1-2010 Mar-1-2010 GCCL Contracting Limited Aecon Group Inc. (TSX:ARE) 4.21

Feb-22-2010 - Nstein Technologies Inc. (TSXV:EIN) Open Text Corp. (NasdaqGS:OTEX) 33.04

Feb-12-2010 Feb-12-2010 Network Utility Services Prestige Telecom, Inc. (TSXV:PR) -

Feb-12-2010 Mar-2-2010 Roydale New Holland Inc. Rocky Mountain Dealerships, Inc. (TSX:RME)

-

Feb-11-2010 - Aastra Networks GmbH KEYMILE GmbH -

Feb-10-2010 - Agilent Technologies Inc., Network Solutions Test Business

JDS Uniphase Corp. (NasdaqGS:JDSU)

165.00

Feb-10-2010 Feb-10-2010 Feterl Manufacturing Corp. Buhler Industries Inc. (TSX:BUI) -

Feb-8-2010 - Ballard Power Systems Inc., Head Office Building Site in Burnaby, British Columbia

Madison Pacific Properties Inc. (TSX:MPC)

19.44

Feb-3-2010 Feb-3-2010 Concord Elevator (London) Ltd. Savaria Corp. (TSX:SIS) 4.44

Feb-1-2010 Feb-1-2010 V. B. Cook Co. Limited GENIVAR Income Fund (TSX:GNV.UN)

-

Jan-29-2010 Jan-29-2010 Mint Inc. and Mint Capital Corp., and Mint Shared Services Inc.

DirectCash Income Fund (TSX:DCI.UN)

0.70

Jan-25-2010 - JEVCO Insurance Company Westaim Corp. (TSX:WED) 248.30

Jan-20-2010 - Posera, Inc. Hosted Data Transaction Solutions Inc. (TSX:HDX)

-

Jan-19-2010 - Overland Realty Limited (TSXV:OVL) Cominar REIT (TSX:CUF.UN) 70.91

Jan-18-2010 - Kansas City Board of Trade Clearing Corporation

Urbana Corp. (TSX:URB) 0.31

Jan-18-2010 Jan-18-2010 Minneapolis Grain Exchange Urbana Corp. (TSX:URB) 0.09

Jan-13-2010 Mar-5-2010 SIRIT Inc. (TSX:SI) Federal Signal Corp. (NYSE:FSS) 73.35

Jan-12-2010 - Kansas City Board of Trade Clearing Urbana Corp. (TSX:URB) 0.33


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Merger/Acquisition Transactions (Last 3 Months)


($mm)

Corporation

Jan-10-2010 - Norex Exploration Services Inc. (TSX:NRX)

Tesla Exploration Ltd. -

Jan-7-2010 Jan-7-2010 Vecima Networks Inc., Wireless Spectrum Asset

2.22

Jan-4-2010 - Dualam Plastics Inc. ZCL Composites Inc. (TSX:ZCL) 25.51

Jan-1-2010 Jan-1-2010 Direct Sales Force Inc. Pareto Corp. (TSX:PTO) 5.51

Dec-21-2009 Dec-21-2009 Auto Fuel Cell Cooperation Corp. 41.95

Dec-18-2009 - AlarmForce Industries Inc. (TSX:AF) Callisto Capital (US) III LP,Callisto Capital Fund III, L.P.,Callisto Capital LP

10.52

Dec-17-2009 Dec-22-2009 Carbon Capital Management Inc. HTC Purenergy Inc. (TSXV:HTC) 0.15

Dec-14-2009 - Porthus N.V. (ENXTBR:ALPTH) Descartes Systems Group Inc. (TSX:DSG)

43.66

Dec-8-2009 - Cash N Go Ltd. Hosted Data Transaction Solutions Inc. (TSX:HDX)

-

Dec-8-2009 - Communifx Corporation MDC Partners Inc. (TSX:MDZ.A) -

Dec-8-2009 Feb-1-2010 Xenos Group Inc. (TSX:XNS) Actuate Corporation (NasdaqGS:ACTU)

33.04

Dec-7-2009 Jan-15-2010 DC Energy Services Inc. Total Energy Services Inc. (TSX:TOT) 42.30

Private Placement Transactions (Last 3 Months)


($mm)

Mar-3-2010 Mar-3-2010 SpePharm Holding B.V. Paladin Labs Inc. (TSX:PLB) 5.49

Feb-26-2010 Feb-26-2010 Route1 Inc. (TSXV:ROI) 1.80

Feb-18-2010 Feb-18-2010 D-Box Technologies Inc. (TSXV:DBO.A)

Caisse de Depot et Placement du Quebec,Societe d'Investissements en Participations Inc.

6.94

Feb-16-2010 - Hosted Data Transaction Solutions Inc. (TSX:HDX)

14.39

Feb-16-2010 - Timminco Limited (TSX:TIM) Strokkur Energy ehf 1.00

Jan-28-2010 Feb-12-2010 Opsens Inc. (TSXV:OPS) 3.45

Jan-25-2010 Feb-19-2010 Westaim Corp. (TSX:WED) Alberta Investment Management Corporation,Goodwood Inc.

263.36

Jan-18-2010 Jan-18-2010 01 Communique Laboratory Inc. (TSX:ONE)

1.07

Jan-18-2010 - Dantherm Power A/S Ballard Power Systems Inc. (TSX:BLD),Danfoss Ventures A/S,Dantherm A/S (CPSE:DANTH)

7.73

Jan-13-2010 - SmartCool Systems Inc. (TSXV:SSC) 0.58

Jan-7-2010 Jan-22-2010 BioteQ Environmental Technologies Inc. (TSX:BQE)

Newalta Corporation (TSX:NAL) 3.79

Dec-23-2009 Dec-23-2009 One Earth Farms Corp. Ag Growth International Inc. (TSX:AFN),Alliance Grain Traders Inc. (TSX:AGT),CAPE Fund Management Inc.,Capital for Aboriginal Prosperity and Entrepreneurship

14.28

Dec-23-2009 Dec-23-2009 TransGaming, Inc. (TSXV:TNG) 8.48

Dec-17-2009 Jan-19-2010 EnWave Corp. (TSXV:ENW) 3.39

Dec-17-2009 Mar-3-2010 Spectral Diagnostics Inc. (TSX:SDI) BioMS Medical Corp. (TSX:MS),Matrix Asset Management Inc. (TSX:MTA)

18.97

Dec-16-2009 Jan-13-2010 Mint Technology Corp. (TSXV:MIT) 0.22

Dec-15-2009 Dec-15-2009 CO2 Solution Inc. (TSXV:CST) Codexis, Inc. 1.88


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Private Placement Transactions (Last 3 Months)


($mm)

Dec-10-2009 - Migao Corporation (TSX:MGO) 10.71

Buyback Transactions (Last 3 Months)

Announced Date Closed Date Target Size ($mm)

Mar-3-2010 - Mediagrif Interactive Technologies Inc. (TSX:MDF) -

Mar-1-2010 - Paladin Labs Inc. (TSX:PLB) -

Feb-17-2010 - Logibec Groupe Informatique Ltee (TSX:LGI) -

Feb-16-2010 - Tucows Inc. (AMEX:TCX) 10.00

Feb-11-2010 - PNI Digital Media Inc. (TSXV:PN) -

Feb-1-2010 - Northfield Capital Corp. (TSXV:NFD.A) -

Jan-27-2010 - CGI Group, Inc. (TSX:GIB.A) -

Jan-11-2010 - COM DEV International Ltd. (TSX:CDV) 17.43

Dec-23-2009 - Canadian Helicopters Income Fund (TSX:CHL.UN) -

Dec-22-2009 - IROC Energy Services Corp. (TSXV:ISC) -

Dec-21-2009 - Glentel Inc. (TSX:GLN) -

Dec-18-2009 - Vicwest Income Fund (TSX:VIC.UN) -

Dec-16-2009 - DEQ Systems Corporation (TSXV:DEQ) -

Dec-16-2009 - Vecima Networks Inc. (TSX:VCM) -

Dec-9-2009 - 20-20 Technologies Inc. (TSX:TWT) -

Dec-9-2009 - Tucows Inc. (AMEX:TCX) -

Dec-8-2009 - Ag Growth International Inc. (TSX:AFN) -

Note: Canceled transactions are not included in the results. Market View constituent companies that are listed as the seller company are included in the results.


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Weekly Events Calendar for the Week ending March 5, 2010

Date/Time Company Name / Subject Event

Mar-08-2010 Bennett Environmental Inc. (TSX:BEV) Expected Earnings Release Date (CIQ Expected)

Mar-08-2010 Cangene Corp. (TSX:CNJ) Expected Earnings Release Date (CIQ Expected)

Mar-08-2010 Enghouse Systems Ltd. (TSX:ESL) Annual General Meeting

Mar-08-2010 Vector Aerospace Corporation (TSX:RNO) Expected Earnings Release Date (CIQ Expected)

Mar-08-2010 Xenos Group Inc. (TSX:XNS) Expected Earnings Release Date (CIQ Expected)

Mar-08-2010 5:00 AM ARISE Technologies Corp. (TSX:APV) Conference Presentation Call

Mar-08-2010 8:30 AM INSCAPE Corp. (TSX:INQ) Earnings Call

Mar-08-2010 8:40 AM Stantec Inc. (TSX:STN) Conference Presentation Call

Mar-08-2010 1:05 PM SXC Health Solutions, Corp. (TSX:SXC) Conference Presentation Call

Mar-08-2010 3:30 PM Bridgewater Systems Corporation (TSX:BWC) Conference Presentation Call

Mar-08-2010 4:00 PM Transition Therapeutics Inc. (TSX:TTH) Conference Presentation Call

Mar-08-2010 4:15 PM MDC Partners Inc. (TSX:MDZ.A) Conference Presentation Call

Mar-08-2010 5:00 PM Enghouse Systems Ltd. (TSX:ESL) Expected Earnings Release Date

Mar-09-2010 Westaim Corp. (TSX:WED) Expected Earnings Release Date (CIQ Expected)

Mar-09-2010 8:45 AM Enghouse Systems Ltd. (TSX:ESL) Earnings Call

Mar-09-2010 11:00 AM Rocky Mountain Dealerships, Inc. (TSX:RME) Earnings Call

Mar-09-2010 1:30 PM Labopharm Inc. (TSX:DDS) Conference Presentation Call

Mar-09-2010 5:00 PM easyhome Ltd. (TSX:EH) Expected Earnings Release Date

Mar-09-2010 5:00 PM EnWave Corp. (TSXV:ENW) Annual General Meeting

Mar-09-2010 7:00 PM Rocky Mountain Dealerships, Inc. (TSX:RME) Expected Earnings Release Date

Mar-10-2010 Ballard Power Systems Inc. (TSX:BLD) Expected Earnings Release Date

Mar-10-2010 Carmanah Technologies Corp. (TSX:CMH) Expected Earnings Release Date (CIQ Expected)

Mar-10-2010 8:00 AM Descartes Systems Group Inc. (TSX:DSG) Earnings Call

Mar-10-2010 9:00 AM Descartes Systems Group Inc. (TSX:DSG) Expected Earnings Release Date

Mar-10-2010 9:30 AM Redknee Solutions, Inc. (TSX:RKN) Annual General Meeting

Mar-10-2010 11:00 AM easyhome Ltd. (TSX:EH) Earnings Call

Mar-10-2010 11:30 AM Descartes Systems Group Inc. (TSX:DSG) Conference Presentation Call

Mar-10-2010 1:35 PM Total Energy Services Inc. (TSX:TOT) Conference Presentation Call

Mar-10-2010 3:00 PM PNI Digital Media Inc. (TSXV:PN) Annual General Meeting

Mar-10-2010 4:00 PM Hammond Power Solutions Inc. (TSX:HPS.A) Earnings Call

Mar-10-2010 4:30 PM Active Control Technology, Inc. (TSXV:ACT) Annual General Meeting

Mar-10-2010 5:00 PM Pethealth Inc. (TSX:PTZ) Expected Earnings Release Date

Mar-10-2010 5:00 PM Points International Ltd. (TSX:PTS) Earnings Call

Mar-10-2010 5:00 PM Points International Ltd. (TSX:PTS) Expected Earnings Release Date

Mar-10-2010 5:00 PM SMTC Corp. (NasdaqGM:SMTX) Earnings Call

Mar-10-2010 5:00 PM WaterFurnace Renewable Energy, Inc. (TSX:WFI) Expected Earnings Release Date

Mar-11-2010 COM DEV International Ltd. (TSX:CDV) Earnings Call

Mar-11-2010 COM DEV International Ltd. (TSX:CDV) Expected Earnings Release Date (CIQ Expected)

Mar-11-2010 iWeb Group Inc. (TSXV:IWB) Annual General Meeting


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Date/Time Company Name / Subject Event

Mar-11-2010 Norsat International Inc. (TSX:NII) Expected Earnings Release Date

Mar-11-2010 7:00 AM ProSep Inc. (TSX:PRP) Expected Earnings Release Date


Mar-11-2010 8:30 AM ProSep Inc. (TSX:PRP) Earnings Call

Mar-11-2010 9:00 AM Ag Growth International Inc. (TSX:AFN) Expected Earnings Release Date

Mar-11-2010 9:00 AM ZCL Composites Inc. (TSX:ZCL) Expected Earnings Release Date

Mar-11-2010 11:00 AM Ballard Power Systems Inc. (TSX:BLD) Earnings Call


Mar-11-2010 11:30 AM Pethealth Inc. (TSX:PTZ) Earnings Call

Mar-11-2010 11:30 AM ZCL Composites Inc. (TSX:ZCL) Earnings Call

Mar-11-2010 12:00 PM Norsat International Inc. (TSX:NII) Earnings Call

Mar-11-2010 12:30 PM Descartes Systems Group Inc. (TSX:DSG) Conference Presentation Call

Mar-11-2010 2:00 PM Ag Growth International Inc. (TSX:AFN) Earnings Call

Mar-11-2010 4:00 PM WaterFurnace Renewable Energy, Inc. (TSX:WFI) Earnings Call

Mar-12-2010 Pulse Seismic Inc. (TSX:PSD) Expected Earnings Release Date

Mar-12-2010 9:00 AM McCoy Corp. (TSX:MCB) Expected Earnings Release Date

Mar-12-2010 11:00 AM Commercial Solutions Inc. (TSX:CSA) Annual General Meeting

Mar-12-2010 11:00 AM McCoy Corp. (TSX:MCB) Earnings Call

Historical Equity Pricing Data supplied by Capital IQ is licensed by FTSE International Limited to publish the FTSE Note that the opinions in this report are solely those of the author. The information in this report is gathered from various information provides that we believe to be reliable. Material errors or omissions are unintentional, and corrections may be forwarded to the author for correction in a subsequent report. This report is intended only for sophisticated and accredited investors, the recommendations made should not be acted upon by investors without proper advice and consultation with their investment advisor. Caseridge is not a member of the Investment Industry Regulatory Organization of Canada (IIROC) or of the Toronto Stock Exchange. Caseridge is registered as an Exempt Market Dealer in Ontario.

This message and any attached or linked material, is for information purposes only, and does not constitute an opinion, advice or a recommendation regarding any securities referred to therein. Information in this message or any attached or linked material relating to an offering of securities should be read in conjunction with the prospectus or other offering document for those securities. Caseridge Capital provides corporate finance advisory services in the areas of new issues, private placements, mergers, acquisitions, valuations and strategic advisory services. Caseridge does not directly or indirectly own shares in the companies named in this report, however independently managed mutual funds or other investment vehicles that may be owned by the author or by Caseridge employees may take positions in companies named in this report.

Caseridge Capital Corporation

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