Tuesday, March 30, 1999
Cybersurf, Dejour ride the Web wave
Heavily traded
Garry Marr
Financial Post
Talk about riding a wave. Canadian Internet stocks continued on the crest that carried them to new heights last week.
News that Amazon.com Inc., the number one online bookseller in the United States was entering the online auction business did little to hamper the performance of Bid.Com International Inc., a Canadian-based online auctioneer. Stock in the Toronto Stock Exchange listed company continued to climb yesterday on heavy volume.
To the west, Cybersurf Corp., which is giving away free Internet access software at gas stations for its Web site, saw its stock (CY/ASE) break through a new upper limit to reached a 52-week intraday high of $1.85 before closing up 72¢ at $1.70. More than 2.8 million shares changed hands, despite the Alberta Stock Exchange being shut from 8:45 a.m. to 10:15 a.m. because of computer problems.
On the Toronto Stock Exchange, Dejour Mines Ltd. was the most heavily traded issue with more than 12.1 million shares changing hands. Dejour stock (DEJ/TSE) closed up 21¢ at 81¢ after earlier touching a 52-week intraday high of 99¢. The firm's 5% stake in Internet.Documents.com, a Dallas-based Internet courier company, has propelled the stock. Dejour can increase its stake in the Internet courier to 50% for $2.25-million (US).
"The news is getting further disseminated, " said Simon Learmouth, a Dejour spokesman. He added: "I'm not seeing a lot of American buying yet."
About 40 million shares of the company are outstanding with about 25% of those held by insiders and associates.
Bid.Com, already hot news, yesterday enlisted the help of New York-based Financial Relations Board to promote the company as it moves toward obtaining a Nasdaq listing. The company announced it had applied Feb. 16 and the process takes 30 to 45 days.
Paul Hart, Bid.Com chief financial officer, said there was no plans for a further share issue in conjunction with the Nasdaq listing. There are about 48.1 million shares outstanding. He could not say how warrants had been exercised in recent weeks but in November the company entered into a bought deal with Yorkton Securities Inc. for 5.7 million special warrants. Each special warrant entitles the holder to acquire at no additional cost one unit, consisting of one share and one quarter of a share purchase warrant. Each warrant can be exercised for one share for $1.75.
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