Caseridge Tech Sys Deal Book May 112010 Summary Report

Caseridge Capital Corporation
Caseridge TechSys DealBook May 11, 2010

Summary Report
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1 First Canadian Place,

100 King Street West, Suite 5700
Toronto, Ontario M5X 1C7
T 416-915-4142 F 416-915-3177
www.caseridge.com
TECHNOLOGY & SPECIAL SITUATIONS REVIEW: MAY 11, 2010

Caseridge TechSys DealBook May 11, 2010
Contents
CASERIDGE TECHSYS COMMENTARY.......................................................................................................... 4
TECHNOLOGY AND SPECIAL SITUATIONS GROWTH RATES TAKE A STUTTER STEP ....................................................................... 4
THE CASERIDGE TECHSYS DEALBOOK NETWORK.................................................................................... 5
PERFORMANCE UPDATE: CASERIDGE TOP PICKS LIST 2010: ..............ERROR! BOOKMARK NOT DEFINED.
CASERIDGE TOP PICKS LIST 2010 ............................................................................................ ERROR! BOOKMARK NOT DEFINED.
RECENT ANALYST ESTIMATE CHANGES (TOP PICKS LIST: 2010) ........................................... ERROR! BOOKMARK NOT DEFINED.
MIRANDA TECHNOLOGIES INC. (TSX:MT) ........................................................................................................ ERROR! BOOKMARK NOT DEFINED.
ABSOLUTE SOFTWARE CORPORATION (TSX:ABT) .......................................................................................... ERROR! BOOKMARK NOT DEFINED.
MARCH NETWORKS CORPORATION (TSX:MN) ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
MARCH NETWORKS CORPORATION (TSX:MN) ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
RUGGEDCOM INC. (TSX:RCM) ....................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
RUGGEDCOM INC. (TSX:RCM) ....................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
VECIMA NETWORKS INC. (TSX:VCM) .............................................................................................................. ERROR! BOOKMARK NOT DEFINED.
CASERIDGE TECHSYS INDEX COMPONENT SUMMARY AS AT MAY 7, 2010 ...................................................... ERROR! BOOKMARK NOT DEFINED.
M ARKET S ENTIMENT C ASERIDGE T ECH S YS U NIVERSE ................................................ ERROR! BOOKMARK NOT DEFINED.
BULLISH SENTIMENT IN THE CASERIDGE TECHSYS INDEX DROPPED SHARPLY LOWER TO 23% FROM 36% OF THE COMPANIES IN OUR 250 COMPANY INDEX.
ERROR! BOOKMARK NOT DEFINED.
CASERIDGE GMM TRACKING AND GP GROWTH TRENDS .................................................... ERROR! BOOKMARK NOT DEFINED.
THE GROSS MARGIN MULTIPLE (IN PURPLE) (“GMM”) HAS DECLINED TO 1.22 FROM 1.28 IN THE PREVIOUS WEEK AND IT IS NOW AT LEVELS CONSISTENT
May 11, 2010
WITH OUR GROWTH EXPECTATIONS. WE SEE THIS LEVEL AS FAIRLY PRICED. THE NQA GMM, WHICH IS BASED ON ANALYST CONSENSUS ESTIMATES FOR
GROSS PROFITS IN THE “NEXT QUARTER”, DECLINED TO 1.13 FROM 1.20 IN THE PREVIOUS WEEK ..................... ERROR! BOOKMARK NOT DEFINED.
CASERIDGE CANADIAN TECHSYS CAPITAL MARKET SUMMARY (LAST 3 MONTHS)ERROR! BOOKMARK NOT
DEFINED.
WEEKLY EVENTS CALENDAR FOR THE WEEK ENDING MAY 15, 2010 .ERROR! BOOKMARK NOT DEFINED.
BENNETT ENVIRONMENTAL INC. (TSX:BEV) ................................................................................................... ERROR! BOOKMARK NOT DEFINED.
ISOTECHNIKA PHARMA INC. (TSX:ISA) ............................................................................................................ ERROR! BOOKMARK NOT DEFINED.
Caseridge TechSys DealBook
TRANSITION THERAPEUTICS INC. (TSX:TTH) .................................................................................................. ERROR! BOOKMARK NOT DEFINED.

VECTOR AEROSPACE CORPORATION (TSX:RNO)........................................................................................... ERROR! BOOKMARK NOT DEFINED.
SIERRA W IRELESS INC. (TSX:SW) .................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
CINRAM INTERNATIONAL INCOME FUND (TSX:CRW) ...................................................................................... ERROR! BOOKMARK NOT DEFINED.
CINRAM INTERNATIONAL INCOME FUND (TSX:CRW) ...................................................................................... ERROR! BOOKMARK NOT DEFINED.
AXIA NETMEDIA CORP. (TSX:AXX) ................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
INTERMAP TECHNOLOGIES CORP. (TSX:IMP) ................................................................................................. ERROR! BOOKMARK NOT DEFINED.
SOFTCHOICE CORP. (TSX:SO) ....................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
PASON SYSTEMS INC. (TSX:PSI) .................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
AKITA DRILLING LTD. (TSX:AKT.A) ............................................................................................................... ERROR! BOOKMARK NOT DEFINED.
BIOMS MEDICAL CORP. (TSX:MS) ................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
DAY4 ENERGY INC. (TSX:DFE) ...................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
Caseridge Capital Corporation 100 King Street West, Suite 5700, Toronto, M5X 1C7
1l
HEMISPHERE GPS INC (TSX:HEM) ................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
ROCKY MOUNTAIN DEALERSHIPS, INC. (TSX:RME) ........................................................................................ ERROR! BOOKMARK NOT DEFINED.
W ESTAIM CORP. (TSX:WED).......................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
H2O INNOVATION INC. (TSXV:HEO)............................................................................................................... ERROR! BOOKMARK NOT DEFINED.
POINTS INTERNATIONAL LTD. (TSX:PTS) ........................................................................................................ ERROR! BOOKMARK NOT DEFINED.
SOFTCHOICE CORP. (TSX:SO) ....................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
H2O INNOVATION INC. (TSXV:HEO)............................................................................................................... ERROR! BOOKMARK NOT DEFINED.
HEMISPHERE GPS INC (TSX:HEM) ................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
BIOTEQ ENVIRONMENTAL TECHNOLOGIES INC. (TSX:BQE) ........................................................................... ERROR! BOOKMARK NOT DEFINED.
BALLARD POWER SYSTEMS INC. (TSX:BLD) ................................................................................................... ERROR! BOOKMARK NOT DEFINED.
AXIA NETMEDIA CORP. (TSX:AXX) ................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
ANGIOTECH PHARMACEUTICALS INC. (TSX:ANP) ........................................................................................... ERROR! BOOKMARK NOT DEFINED.
TIMMINCO LIMITED (TSX:TIM) ......................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
BELZBERG TECHNOLOGIES INC. (TSX:BLZ) .................................................................................................... ERROR! BOOKMARK NOT DEFINED.
SMTC CORP. (NASDAQGM:SMTX) ................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
www.caseridge.com
TIMMINCO LIMITED (TSX:TIM) ......................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
ELECTROVAYA INC. (TSX:EFL) ....................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
TOTAL ENERGY SERVICES INC. (TSX:TOT) .................................................................................................... ERROR! BOOKMARK NOT DEFINED.
ARISE TECHNOLOGIES CORP. (TSX:APV)..................................................................................................... ERROR! BOOKMARK NOT DEFINED.
BELZBERG TECHNOLOGIES INC. (TSX:BLZ) .................................................................................................... ERROR! BOOKMARK NOT DEFINED.
ARISE TECHNOLOGIES CORP. (TSX:APV)..................................................................................................... ERROR! BOOKMARK NOT DEFINED.
DATA GROUP INCOME FUND (TSX:DGI.UN) ................................................................................................... ERROR! BOOKMARK NOT DEFINED.
W ESTAIM CORP. (TSX:WED).......................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
BIOTEQ ENVIRONMENTAL TECHNOLOGIES INC. (TSX:BQE) ........................................................................... ERROR! BOOKMARK NOT DEFINED.
W ATERFURNACE RENEWABLE ENERGY, INC. (TSX:WFI) ............................................................................... ERROR! BOOKMARK NOT DEFINED.
F: 416-915-3177
ENGLOBE CORP. (TSX:EG) ............................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
DEQ SYSTEMS CORPORATION (TSXV:DEQ) ................................................................................................. ERROR! BOOKMARK NOT DEFINED.
TUCOWS INC. (AMEX:TCX) ............................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
AIRBOSS OF AMERICA CORP. (TSX:BOS) ....................................................................................................... ERROR! BOOKMARK NOT DEFINED.
AZURE DYNAMICS CORP. (TSX:AZD) ............................................................................................................. ERROR! BOOKMARK NOT DEFINED.
TOTAL ENERGY SERVICES INC. (TSX:TOT) .................................................................................................... ERROR! BOOKMARK NOT DEFINED.
AEROQUEST INTERNATIONAL LTD. (TSX:AQL) ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
AZURE DYNAMICS CORP. (TSX:AZD) ............................................................................................................. ERROR! BOOKMARK NOT DEFINED.
HSE INTEGRATED LTD. (TSX:HSL)................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
P: 416-915-4142
PETHEALTH INC. (TSX:PTZ) ............................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
TUCOWS INC. (AMEX:TCX) ............................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
W EBTECH W IRELESS INC. (TSX:WEW) .......................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CGI GROUP, INC. (TSX:GIB.A)....................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
SXC HEALTH SOLUTIONS, CORP. (TSX:SXC) ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
GUESTLOGIX INC. (TSX:GXI) .......................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
AASTRA TECHNOLOGIES LTD. (TSX:AAH) ...................................................................................................... ERROR! BOOKMARK NOT DEFINED.
AG GROWTH INTERNATIONAL INC. (TSX:AFN) ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
Caseridge Capital Corporation |

MORNEAU SOBECO INCOME FUND (TSX:MSI.UN) ......................................................................................... ERROR! BOOKMARK NOT DEFINED.
AG GROWTH INTERNATIONAL INC. (TSX:AFN) ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
MCCOY CORP. (TSX:MCB) ............................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
PROSEP INC. (TSX:PRP) ................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
W EBTECH W IRELESS INC. (TSX:WEW) .......................................................................................................... ERROR! BOOKMARK NOT DEFINED.
VICWEST INCOME FUND (TSX:VIC.UN) .......................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CATCH THE W IND, LTD. (TSXV:CTW.S) ......................................................................................................... ERROR! BOOKMARK NOT DEFINED.
adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 2

TERAGO INC. (TSX:TGO) ................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
TERAGO INC. (TSX:TGO) ................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
ZCL COMPOSITES INC. (TSX:ZCL) ................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
CATCH THE W IND, LTD. (TSXV:CTW.S) ......................................................................................................... ERROR! BOOKMARK NOT DEFINED.
PETHEALTH INC. (TSX:PTZ) ............................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
STANTEC INC. (TSX:STN) ............................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
XEBEC ADSORPTION INC. (TSX:XBC) ............................................................................................................. ERROR! BOOKMARK NOT DEFINED.
AEROQUEST INTERNATIONAL LTD. (TSX:AQL) ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
MCCOY CORP. (TSX:MCB) ............................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
XEBEC ADSORPTION INC. (TSX:XBC) ............................................................................................................. ERROR! BOOKMARK NOT DEFINED.
INTERNATIONAL ROAD DYNAMICS INC. (TSX:IRD) .......................................................................................... ERROR! BOOKMARK NOT DEFINED.
PEER 1 NETWORK ENTERPRISES, INC. (TSX:PIX) .......................................................................................... ERROR! BOOKMARK NOT DEFINED.
DIVESTCO INC. (TSX:DVT) .............................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
PEER 1 NETWORK ENTERPRISES, INC. (TSX:PIX) .......................................................................................... ERROR! BOOKMARK NOT DEFINED.
ISOTECHNIKA PHARMA INC. (TSX:ISA) ............................................................................................................ ERROR! BOOKMARK NOT DEFINED.
CLARKE INC. (TSX:CKI) .................................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
HARTCO, INC. (TSX:HCI) ................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
CANADIAN HELICOPTERS INCOME FUND (TSX:CHL.UN) ................................................................................ ERROR! BOOKMARK NOT DEFINED.
AKELA PHARMA INC. (TSX:AKL) ..................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
May 11, 2010
3l
Caseridge TechSys Commentary
Technology and Special Situations Growth Rates Take a Stutter Step
Lost in the turmoil of last Thursday’s market melt-down that was followed by the Monday market melt-
up was the data flowing into our Gross Margin Multiple model showing that gross profit growth rates
have taken a significant nose dive as first quarter 2010 results began to filter in:
0.1
Caseridge TechSys Index"
0.08
LQA/LTM Gross Profit Growth Rates
0.06
5.44%
0.04 3.89%
3.82%
0.02
0
-1.21%
www.caseridge.com
-0.02Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10
-3.17%
-0.04
-0.06 -5.66%
-6.43% -6.63% -6.24%
-6.43% LQA/LTM
-0.08
-8.08% -7.85%
-0.1 -9.22% -10.08%
-0.12
The above chart plots the trending gross profit growth rate of the companies in the 250-company
Caseridge TechSys Index as measured by gross profits in the last reported quarter annualized (or “LQA”)
F: 416-915-3177
divided by the figure for the previous four quarters or last twelve months (“LTM”). We track this as at
the “average date of the trailing financials” on the horizontal axis for the index based on the date of the
reported financial statements. This calculation provides us with a “running” growth rate of the
underlying business activity that can often be used to identify trends that are developing in the business
activity of the component companies.
We can see that going back to March of 2009 that gross profits in the Caseridge component companies
were declining at a run rate of over 10% (at the trough) – a calamitous decline. Growth rates remained
negative until September of 2009, in which the trend turned positive, peaking at over 5% by October 2009
P: 416-915-4142
– a move that coincided with the tremendous market rally that we saw in 2009. From that peak however,
the growth rates have declined month over month, and as the March quarter begins to filter into our
model we see that as at January 2, 2010 that the growth rate has once again dipped into negative territory.
This decline has also coincided with some broad weakness in the index component share prices.
Even with last week’s market decline, the weakness of the first quarter 2010 results deeply concerns us.
As we can see from the long list of companies that are releasing first quarter financials this week (see
page 14 for the “Weekly Events” Calendar) we will be in a better position to review this trend next week
based on the additional data points from the March quarter. Simply put, a sustainable market recovery
for Canada’s growth stocks requires growth to fuel it. Right now, we’re not seeing it in the data.
We hope that you enjoy this week’s Caseridge TechSys DealBook.
Adam E. Adamou
adamou@caseridge.com

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.
May 11, 2010
5l
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.
www.caseridge.com
F: 416-915-3177
P: 416-915-4142

Caseridge Tech Sys Deal Book May 112010 Summary Report

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Caseridge TechSys DealBook May 11, 2010

Caseridge Capital Corporation

1 First Canadian Place,

TECHNOLOGY & SPECIAL SITUATIONS REVIEW: MAY 11, 2010

TRANSITION THERAPEUTICS INC. (TSX:TTH) .................................................................................................. ERROR! BOOKMARK NOT DEFINED.

INTERMAP TECHNOLOGIES CORP. (TSX:IMP) ................................................................................................. ERROR! BOOKMARK NOT DEFINED.

adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 2

We hope that you enjoy this week’s Caseridge TechSys DealBook.

adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 4

adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 6

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