THURSDAY, APRIL 24, 2014
THE INDEPENDENT, BIGGAR, SK - 11
Financial Advice to make a positive difference by Kim Inglis, BCom, CIM, PFP, FCSI, AIFP | Investment Advisor and Portfolio Manager Canaccord Wealth Management Recent technology sector events, such as King Digital Entertainment’s IPO and Facebook’s $19 billion acquisition of WhatsApp, have investors
talking about a bubble. Price-earnings ratios in the sector are certainly high, and some valuations may not be realistic, but data show the sector itself is in much better shape than 14 years ago. PwC reports that 64 technology companies around the globe went public in the fourth quar-
ter of 2013 (issue size greater US$40 million), garnering US$11.4 billion in total proceeds. American firms led with 35 IPOs representing 66 per cent of total proceeds. The U.S. also recorded the top five IPOs of the year including Twitter Inc.’s US$1 billion IPO. These numbers seem
This is the Ànal week to nominate & vote in the CAA Saskatchewan’s Worst Roads Campaign It’s the final week in CAA Saskatchewan’s Worst Roads campaign and the numbers of votes have steadily increased. To date, over 3700 votes have been received, which far surpasses total votes recorded for the 2012 and 2013 Worst Roads Campaigns. The current top ten leading worst roads are: 1) Saskatchewan 24, Leoville; 2) Saskatchewan 155, LaLoche; 3) Saskatchewan 21, Paradise Hill; 4) Saskatchewan 44, Eston; 5) Saskatchewan 51, Major; 6) Northern Woods and Water Route, Carrot River; 7) Saskatchewan 908; Île-à-la-Crosse; 8) Saskatchewan 918, Patuanak; 9) Saskatchewan 123, Cumberland House; 10) Saskatchewan 51, Kerrobert. The CAA 2014 Worst Roads Campaign, which started April 1, invites
motorists to nominate and vote for what they believe is the worst road they’ve travelled on recently in the province. Votes can be recorded online at caask.ca/worstroads until April 25. A road qualifies as a “worst” if it is in general disrepair with potholes, severe rutting, cracks, has poor signage or congestion or is too narrow for motorists, pedestrians and cyclists to share safely. At the close of the campaign, the list of top ten roads will be sent to the appropriate government agencies and will also be available online at caask.ca. Working towards better roads and driving safety is a priority for CAA Saskatchewan. The Worst Roads Campaign helps put a spotlight on troublesome and even dangerous road conditions in the province and is one tool to help address those roads in most need of attention.
Alley Katz Bowling Scores April 14-18, 2014 Tuesday Mixed League: MHS – Jason Rachke, 287;MHT – Jason Rachke, 747; WHS – Leisha Desrosiers, 202; WHT – Leisha Desrosiers, 492. New Horizons League: MHS – Jack Eckart, 266; MHT – Glen Shockey, 624; WHT – June Hoppe, 180; WHT
– June Hoppe, 501. Thursday Senior’s League: MHS – Jack Eckart, 246; MHT – Jack Eckart, 595; WHS – Dorothy McCarty, 214; WHT – Dianna Meger, 537. Y.B.C. League: Bowlasaurus: High Score – Sawyer Heimbecker, 77. Pee
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Wee: High Score – Alara Ormiston, 85; High Score Double – Jailynn Irwin, 152. Bantam: High Score – Cassie Raschke, 128; High Score Triple, Tristan Otterson, 287. Juniors: High Score – Justin Otterson, 123; High Score Triple – Justin Otterson, 335.
large but are smaller than previous years. In comparison, 2011 saw 87 global IPOs with US$15.9 billion total proceeds and 2012 brought 69 IPOs with US$23.2 billion total proceeds whereas, in 1999 alone, 308 technology companies went public. As well as fewer IPOs than prior years, the companies going public now are generally more stable. Facebook Inc, who raised $US16 billion in its May 2012 IPO, reported revenues of US$2.59 billion in the fourth quarter of 2013, a 63 per cent increase year over year. The company has 1.23 billion active users and boasts adjusted operating margins of 56 per cent. Technology sector heavy hitters include Apple Inc who recently reported revenues of US$57.6 billion and Google Inc at US$16.9 billion. Facebook, Apple, and Google clearly have a more sustainable business model than the headline makers of the dot-com boom, and the sector as a whole has grown remarkably since then.
Cisco Systems Inc reports that last year’s mobile data traffic was nearly 18 times the size of the entire global Internet in 2000. A single exabyte of traffic traversed the global Internet in 2000, in contrast with 2013 when mobile networks carried nearly 18 exabytes of traffic. Cisco predicts that by 2018 global mobile data traffic will increase almost 11fold, reaching 15.9 exabytes per month. The sector also has corporate side support as businesses use more information technology. Research provider Gartner Inc, says worldwide IT spending is projected to total $3.8 trillion in 2014, a 3.1 per cent increase over the year prior. Enterprise software spending growth ranks the strongest at an expected growth rate of 6.8 per cent. Those seeking individual equity exposure may wish to revisit established names like Cisco, Intel and Microsoft. According to Canaccord Genuity analyst Martin Roberge, rising capex intentions, improving global growth
prospects and more demanding market valuations will likely cause investors to re-enter those names. Roberge notes that while these companies are still reinventing themselves, investors are paid nicely to wait for the turnaround via dividends on average 3.3 per cent. The shares should provide a solid margin of safety trading at 12.5x one-year forward EPS. Investors wanting a risk-adjusted way of accessing the space can opt for an exchange-traded fund. First Asset has a Tech Giants Covered Call ETF (TSX: TXF) that provides exposure to the 25 largest technology companies and incorporates a covered call option writing program to provide downside protection and income. Kim Inglis, CIM, PFP, FCSI, AIFP is an Investment Advisor and Portfolio Manager with Canaccord Wealth Management, a division of Canaccord Genuity Corp., Member – Canadian Investor Protection Fund, reynoldsinglis.ca. The views in this column are solely those of the author.
2005 Chev Tahoe 4x4, silver, 197,368km, StkT14182BB ...............................................................................$ 9,900 2006 GMC ½ Crew Denali, white, 160,000km, SOLD StkT14288B ...........................................................$19,900 2007 Buick Allure CX, white, 157,197km, StkT14295B ..............................................................................$ 9,900 2007 Chev Silverado ½ Reg Cab Z71, white, 181,302km, StkT14424A ...........................................................$10,900 2007 Dodge Dakota SLT Crew, red, 152,977km, StkT14372B ...................................................... $13,900 SOLD 2007 GMC ½ SLT Crew 4x4, white, 141,088km, StkT14362A............................................$22,900 2007 Chev Silverado Ext ½ 4x4, silver, 180,792km, StkT14372A .......................................$11,900 SOLD 2008 Pontiac G6 SE, black, 85,306km, StkT13546C ...........................................................$11,900 2008 Honda Ridgeline RTL, blue, 102,286km, StkT14340A ................................................$21,900 2009 GMC ½ Ext 4x4 SLE, red, 41,565km, StkT14555A ....................................................$20,900 2009 Chev Silverado ½ Ext 4x4, silver, 75,242km, StkT14182A ........................................$19,900 2009 Ford Explorer XLT 4x4, white, 123,310km, StkT14573A...........................................$20,300 2009 Chev Silverado ¾ Crew 6.6T, white, 136,452km, StkT1510A................................. $29,900 2009 GMC ½ Crew SLE 4x4, crimson, 140,282km, StkT14480A ........................................$19,900 2009 Dodge Ram 2500 SLT Crew 6.7T, black, 134,216km, StkT14515B............................$29,900 2010 Chev Silverado ½ Reg Cab Shortbox, silver, 46,000km, StkT14318A ........................$22,900 2010 GMC Acadia AWD, silver, 100,703km, StkT14264A ...................................................$24,900 2010 Cadillac Escalade Luxury, silver, 78,142km, StkT14422A ...........................................$46,900 2010 Toyota Corolla, charcoal, 93,890km, StkT14338A ......................................................$12,900 2010 Honda CRV AWD, black, 50,141km, StkR5053A ........................................................$24,900 2011 Chev ½ Silverado Crew LTZ, white, 91,382km, StkT14491B.....................................$31,900 2011 Chev Equinox LT AWD, silver, 67,426km, StkT14357B .............................................$21,900 2011 Chev Silverado ½ Crew 4x4, silver, 66,274km, StkT14370A ......................................$28,900 SOLD 2012 Chev ¾ Ext Silverado 6.0L gas, white, 58,117km, StkT14244A ............................. $34,900 2012 GMC ½ Crew Denali, white, 81,559km, StkT14476A ................................................$41,900 2012 Dodge Ram Laramie Longhorn ¾ Crew, pewter, 34,894km, StkT1507A ................ $52,900 SOLD $32,900 2013 Ford Edge SEL, AWD, red, 331,307km, StkT13546B ............................................
2013 Yukon Denali AWD white diamond, 26,000km, StkR5079
$64,900
2013 Chev Sonic 5 Door LT white, 17,893km, StkR5065, great fuel economy
$13,900
If we don’t have the vehicle you want, we will FIND one for YOU!
Rosetown Mainline Motor Products Hwy #7 West, Rosetown, Sask. Toll free:1-877-979-7999 or 306-882-2691 Dealer License #311284