Mpartners RES Canadian Small Cap Tech Index - April

Published for institutional investors earlier today. The bottom line is that small cap technology stocks have demonstrated 12.5% better YTD returns than the main index. Even with solid returns so far this year, the Small Cap Tech Index is still trading at an earnings discount to the main index, inferring that there remains future upside. During April, approximately $92M in capital was raised, with OTC making two acquisitions. OTC bought Nstein for approximately $32 M, and then followed up later in the month with an acquisition of Burntsand for approximately $12M.

Various sources continue to call for a secular bull market for the technology sector due to a current IT replacement cycle, and the emergence of the mobile web which could be up to five times the size of the fixed line internet measured in terms of users.

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