CORRECTION
biz.yahoo.com
Thursday July 8, 5:25 pm Eastern Time
CORRECTED - Microforum rises on expansion plans, results hopes
In story headlined ''Microforum rises on expansion plans, results hopes'', please read in ninth paragraph ''...consensus expectation of C$43 million to C$50 million in revenue for the fiscal year'' (clarifies that revenue forecasts for full year)
A corrected repetition follows:
By Susan Taylor
TORONTO, July 8 (Reuters) - Shares of electronic commerce marketing firm Microforum Inc. (Toronto:MCF.TO - news) rang up major gains on Thursday as investors reacted to promising signs of expansion and expectations of strong first-quarter results.
The Toronto-based company gained C$1.15 by early afternoon to C$7.85 on the Toronto Stock Exchange. More than 4 million shares changed hands, nearly three times the average daily trading volume of the issue, making it Toronto's top active.
The markets may be reacting to a CBC television interview with Chief Executive Howard Pearl, who said on Wednesday that Microforum would list on the U.S. Nasdaq exchange within 60 days.
In fact, the firm will complete its prospectus within 60 days, a step that precedes an exchange listing.
''They might want to close some acquisitions before they do that to stir up some U.S. interest,'' said Alpha-Amar Ba, analyst with Groome Capital Inc. in Montreal, who follows the company.
Pearl was traveling in Chicago on Thursday and could not be reached for comment. He was reported to have said this week that Microforum is in talks for the acquisition of three electronic commerce firms.
The firm is in advanced discussions with one Canadian company, said Ba, who added that Microforum is also seeking purchases in New York, Dallas, San Francisco and Seattle.
Speculation is also swirling that the firm will post better-than-expected first-quarter results in late July.
There is a suggestion that Microforum will beat the 35 percent growth rate that is typical among Internet companies as well as the consensus expectation of C$43 million to C$50 million in revenue, said Ba.
''Word on the street is that the company's first-quarter results will be better than expected,'' said another analyst, who asked not to be identified.
Earlier this month, Microforum again topped the most actives roster on the TSE, rising C$1.10 to hit C$6.90 after announcing it had final receipt from regulators in Ontario, British Columbia and Alberta for a C$20 million private placement financing.
Microforum also announced on Tuesday that it had appointed Dwight Crane, a professor of finance and banking at Harvard Business School, to its board. Ba said Crane's appointment is likely aimed at expanding the firm's U.S. exposure.
($1=$1.47 Canadian) |
