Found at the EMJ site:
emj.ca
EMJ Data Sys Gets Sudden, Unexpected Linux Boost
(The following is a press release issued taken from the Dow Jones New Wire).
By Ann Marie McQueen
TORONTO (Dow Jones)--EMJ Data Systems Ltd.'s (T.EMJ) share price has unexpectedly doubled Thursday, and analysts and a company official attribute the activity to the Linux frenzy.
In Toronto trading, EMJ Data is up $2.95, or 97%, to $6.00 on about 152,000 shares, after trading as high as $7.00 Thursday. "Linux stocks are all going through the roof today," said Jim Estill, EMJ president.
Back on Oct. 13, the Guelph, Ontario computer and computer components distributor issued a press release indicating it reduced the size of its Linux kernel to allow the device to be used in embedded personal computers, Estill said.
EMJ hasn't released any news since first-quarter earnings came out Nov. 25. The company had boosted its annual dividend to 16 Canadian cents from 12 Canadian cents, but that was in late October.
Roger Dent, analyst at Yorkton Securities Inc., "guessed" Tuesday's boom happened after "someone found out about the Linux connection." Dent said the news received little attention when it came out almost two months ago. "I don't know why (there was such a reaction Thursday)," he said. "I think everyone's looking for something to buy," said David Wong, Analyst with Canaccord Capital Corp. Both Wong and Dent have seen EMJ stock as undervalued, issuing price targets of C$8 and C$5.50-C$6, respectively. Both believe the stock has the potential to go higher. Yorkton has an earnings target of 75 Canadian cents a share for fiscal 2000, which would mean a "very low" price earnings ratio of 7.7, said Dent. "EMJ is a very cheap stock," Dent said. "So even though the stock has doubled, I don't think anyone is taking a significant risk in buying it." And while Estill has long believed EMJ's stock was undervalued, he said he would prefer a slow increase to Thursday's explosion. Company officials are talking Thursday to officials at the Toronto Stock Exchange and EMJ may issue a release indicating there is no material news on the way, Estill said. EMJ Data "will sell more embedded processors" because of its association with Linux, Estill said. But while Linux is a growth area for the company, it accounts for less than 1% of the company's business, with embedded processors, accounting for only 5%, he said.
-Ann Marie McQueen, Dow Jones Newswires
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