Forecross falling, coincident with Vancouver Sun expose today
Forecross comes pretty close to your DOOM criteria, now on the way down...
The front page of the Business Section (page D1) of today's Vancouver Sun, the leading newspaper in Western Canada, contains a lengthy article by David Baines exposing the sorry state of affairs at Forecross (FRX.U on the VSE). A summary is quoted below from canada-stockwatch.com
"Van Sun says auditor has substantial doubt
Forecross Corporation FRX.U
Shares issued 11763612 1998-04-20 close $9.05
Tuesday Apr 21 1998
The Vancouver Sun reports in its Tuesday edition that Forecross Corp, which bills itself as the solution to the year 2000 computer problem, has become one of the highest valued stocks on the Vancouver Stock Exchange. Reporter David Baines says, however, that the San Francisco company has failed to meet its own financial projections and has become insolvent, raising questions as to whether it will survive to the year 2000. Forecross shares, which are quoted in US dollars on the VSE, closed on Monday at US$9.05. With 11.8 million shares outstanding, its market capitalization is now US$107 million, or about $155 million, the fourth highest on the Vancouver exchange. Forecross president Kim Jones and chief financial officer Bonnie Castello continue to take hefty salaries. Auditor BDO Seidman notes, however, that Forecross has sustained recurring losses from operations, is has net capital deficiencies and negative working capital, and there is substantial doubt about the ability of the company to continue as a going concern.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com"
Needless to say, I'm short... |
