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Gold/Mining/Energy : Trojan Technologies Inc. - T.TUV -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Hamlin who wrote (17)	10/1/1999 9:27:00 AM
From: MrsNose	Respond to of 127

Thanks Kevin...looks good for some upside. For anyone that didn't see it, here's the National Post article from today: Second profit revision batters Trojan shares Thomas Hirschmann Financial Post, with files from Bloomberg News Trojan Technologies Inc. (TUV/TSE), down $1.35 to $5.95, on volume of 529,805 shares. The shares fell a further 18.5% yesterday, after Wednesday's 38.6% drubbing, which was sparked by the company's second downward revision of expectations for its fiscal year profit. The company said it expects to break even in fiscal 1999, revised from an earlier 60½ to 65½ a share, which was itself a revision from an estimate of $1.06 a share. Trojan cited accounting errors as the cause of the shortfall. Yesterday, Canaccord Capital Corp. cut the stock to a "hold" with a 12-month target price of $10, saying "the collective Street will require several quarters to evaluate the success of Trojan's soon-to-be-announced game plan." Scotia Capital Markets raised the stock to a "hold" from "reduce," with a 12-month target of $17.70 a share.

To: Kevin Hamlin who wrote (17)	10/1/1999 6:40:00 PM
From: MrsNose	Respond to of 127

From the London Free Press:Friday, October 1, 1999 Trojan looking for new chief financial officer By NORMAN DE BONO, Free Press Business Reporter Under fire from financial analysts for lack of organization at its senior management levels, Trojan Technologies announced yesterday it will begin the search for a new chief financial officer. The person selected will be expected to lead the company into international markets and help it return to stability as its stock continued its slide yesterday falling $1.35 to $5.95 on the Toronto Stock Exchange. The stock dropped almost 40 per cent Wednesday when it was announced a projected $5-million profit vanished into a break-even financial picture and projected earnings of 60 cents a share were wiped out. "We will be recruiting internationally," Trojan executive vice-president Marvin Devries said. "We are looking for someone who can bring to this position the relevant amount of experience and who has the comparable level of responsibility with an international company." An internal committee has been struck to search for the new chief financial officer, who will be challenged to drop the cost of manufacturing Trojan products while smoothing out the inputting problems which resulted in serious accounting errors, said DeVries. Trojan vice-president of finance David Holden, who served as chief financial officer, is now on sick leave and will return in a "support" role to the new chief financial officer, said DeVries. Craig Dunbar, a professor at the Richard Ivey School of Business at the University of Western Ontario, believes it will take a minimum of six months and steady improvements in the company's performance before Trojan's stock will rebound. "The market gets mighty nervous when it hears about accounting irregularities. It will take time to regain that trust," Dunbar said. The real danger is the company may need to borrow capital in its comeback bid and may not be able to because it is considered too high a risk, he said. "This will reduce their choice for equity. It will hurt them," Dunbar said. If the company does not improve its performance during the next two quarters, the result will be "very damaging," he added. DeVries agreed, saying nothing less than steady growth will satisfy nervous shareholders. "We need to show progressive improvement quarter over quarter. By the end of the second quarter, we should find ourselves in a position approaching the kind of profitability we have seen," DeVries said. "It will take a full year to get all the pieces in place." Trojan, which makes ultraviolet light water filtration systems, has done work in 35 countries. "We need to put in place a system that can deal with us having offices in multiple locations, a better reporting structure and an understanding of tax implications. We need to bring to the new position someone with a strong direction to do that work who at the same time can work with the banking and investment communities," DeVries said. This week's earnings warning was Trojan's second in three months. On June 30, the company announced it would not meet projected earnings of $1.06 a share, forecasting earnings of about 60 cents a share. Trojan will meet with institutional investors next week to detail what went wrong, company spokesperson Diana Cunningham said. Trojan will release its year-end results on Oct. 27.