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Alright well seeing as I am ending my first month in CAPS in the red I suppose I should attempt to explain the madness behind some of my picks.


Before I start though, I would like to thank the CAPS team at TMF. I think this is the best "social stock pick" tool out there and I only expect it to get better as beta testing continues. Kudos to the whole team.


Okay so let's start at the start so to speak. My first CAPS pick was Corel (CREL). In keeping in line with the concept putting my money where my mouth is I took all of my first CAPS picks from stocks I actually held. I bought Corel in late July on the Toronto Stock Exchange (TSX: CRE). Since that time it has been good to me returning roughly 40%. While the return I got from Corel was amazing for a mere quarter I plan on holding it for a while and here is my reasoning why:


Corel is not the same company it used to be. Before it went private Corel was run my Michael Cowpland and his cronies. History has proven these guys to be a bunch to talentless hacks who couldn't manage their way out of a paper bag (remember Corel Linux). Cowpland's current venture, ZIM Wireless ( has been struggling over the past few years and is currently on life support. Fortunately, Vector (the private equity firm that bought Corel) replaced the management which is now led by David Dobson, a former IBM executive. The current management team has a great track record so far including some great acquisitions including Jasc, WinZip and InterVideo.


It was the acquisition of Jasc which peaked my interest in the first place. Jasc's flagship product, Pain Shop Pro, has always had a cult following. PSP has found a nice niche as the everyman's graphics software, not as intimidating as Adobe Photoshop, but much more powerful that the free software that is packaged with cameras and printers.


Corel is leveraging PSP to go after what they see as a growing market for graphics software: casual users. This group represents the average Joe who wants to touch up their photos before the share them. With the growth of services like Flickr and the ubiquity of digital cameras I like where Corel is going and I think they have the management team to get them there.


I should also comment on WordPerfect. I am not expecting a lot out of WordPerfect and I can see the company dropping the line if it continues to loose money.


I expect to see Corel post a profit in 2007.


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