FP Article: Microforum steals limelight on Net stage
Hottest stock on TSE
Garry Marr
Financial Post
Microforum Inc. is the latest Internet stock darling, judging by the
past two sessions in which the Toronto-based company's share price
has doubled, and added about $150-million in market cap.
"I'm guessing a lot of the interest is coming from the U.S.," said
David Wong, a Vancouver-based analyst at Canaccord Capital Corp.,
citing the fact that Howard Pearl, Microforum's chief executive, was
in New York this week speaking at the Internet and Electronic
Commerce Exposition.
"The stock has never been here before; this is new territory."
Microforum shares (MCF/TSE) rose as high as $12 intraday -- a
52-week high. As recently as Oct. 28, the stock was trading at just
42¢. It ended yesterday's session up $1.85 at $9.85.
Add in the fact that more than 22 million shares have traded in the
past two sessions and Microforum is the hottest stock on the Toronto
Stock Exchange, replacing online auctioneer Bid.Com International
Inc., another hot Internet stock whose trading has since shifted to
Nasdaq and American influences.
"Look at Bid.Com. The U.S. investors came in here and drove the
thing up like crazy. Any investor out there would start seeing
Microforum as another alternative," said Mr. Wong.
An even more impressive statistic in Microforum's gain was that it
came as the Nasdaq composite index fell 0.9%, led by a massive
decline by Amazon.com Inc. (AMZN/ NASDAQ), which on
Wednesday forecast widening losses. Amazon said it lost 23¢ (US) a
share in the first quarter, from 7¢ (US) in the same period a year
earlier.
Microforum's latest results for the third quarter ended Nov. 30
showed a loss of 18¢ a share, compared with 3¢ for the same period
a year earlier. According to one analyst surveyed by First Call Corp.,
the company should make money in fiscal 2000.
The stock seemed to get a lift this month when iFront, Microforum's
wholly owned subsidiary, was selected as one of 25
Microsoft-certified solution providers across North America to take
part in the Commerce Partner Advisory Council.
The announcement was made on April 12, when the stock was
trading at $2.35.
"That was a huge announcement. Microsoft doesn't just allow you to
come on board and say 'Help us field and spearhead this growth in
this e-commerce sector.' They're going to be on the leading edge of
every new technology, every new idea that's going to come through
e-commerce," said Mr. Wong.
Microforum has said its stock has gained because of the performance
of U.S. comparables such as Razorfish Inc. (RAZF/NASDAQ).
After an initial public offering of $16 (US) a share on Tuesday,
Razorfish rose $5 1/8 to $51 1/2 (US) yesterday.
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