Corel News................Graham
TORONTO (Dow Jones)--Corel Corp. (COSFF) shares have advanced about 9% over the last three sessions, getting a boost from a "buy" rating
from RBC Dominion Securities Inc. on Tuesday.
A Corel spokeswoman said there is no other news which would explain the rise in the company's share price this week or the heavier-than-usual
volume.
There have also been published rumors that the company's Corel Computer Corp. unit is about to land a large contract, but the spokeswoman
said there is no announcement pending, and wouldn't comment further.
The bullish RBC Dominion report, by analyst David Kramer, places a 12-month price target of C$12.00 on the stock.
Late Thursday on the Toronto Stock Exchange, Corel shares have risen 0.15 to 8.90.
CIBC Wood Gundy Securities Inc. has been involved in much Corel trading this week, crossing five blocks Tuesday totaling 1,820,400 shares
and two blocks Thursday totaling 709,600 shares.
A CIBC Wood Gundy analyst couldn't be reached for comment, but the Corel spokewoman said the last report she saw from that brokerage, dated
July 21, rated Corel shares a "hold."
In an Aug. 12 report, Kramer said he believes Corel's earnings are "nearing a turning point" after two years of volatility.
The analyst was unwilling to comment on his report or on the rumors about Corel Computer.
He sees Corel losing US$1.39 a fully diluted share in fiscal 1997, but earning 22 U.S. cents a fully diluted share before non-recurring charges.
He sees Corel earning 36 U.S. cents a fully diluted share in fiscal 1998 and 57 U.S. cents a fully diluted share in fiscal 1999.
Kramer noted in his report that his model includes minimal revenue from Java and the Java-based Corel Computer, saying the commercial
viability of those products isn't certain. |
