To: wiley murray who wrote (113 ) 1/19/1999 7:23:00 PM From: Adamson Read Replies (1) | Respond to of 222
wiley murray: Update on Microforum (MCF on TSE) >>>Tuesday January 19, 4:44 pm Eastern Time Microforum makes mighty bound on U.S. client rumors By Lydia Zajc TORONTO, Jan 19 (Reuters) - E-commerce web-site maker Microforum Inc. (Toronto:MCF.TO - news) soared on Tuesday on mounting speculation that it would take on a major U.S. fashion house, possibly Donna Karan International Inc. (NYSE:DK - news), as a client. Toronto-based Microforum gained C$0.18 to C$2.20 on more than two million shares, rising for the third day in a row. Investors chatting on the Internet-based service Silicon Investor have already spread the rumor that the trendy New York-based design company, which has such brands as DKNY and a cosmetics line, will become a client. Microforum has a marketing arm coupled with strong software with which to build Internet web-sites for retailers and others, including Sony Music Canada and Ford Motor Co. of Canada, a unit of Ford Motor Co. (NYSE:F - news). Christy Hood, spokeswoman for Donna Karan in New York, told Reuters that Microforum was already doing some work for them. ''Yes, they're doing our press kits on CD-ROM for us,'' she told Reuters. She added that there were no other arrangements. Howard Pearl, Microforum's chief executive and president, was mum on the topic. ''There's some exciting news coming, there's no question about that, and in a number of different fields.'' Pearl added that the company has been actively seeking U.S. clients. ''Every dog has his day,'' he said. ''I think we're just beginning to howl.'' Although any stock related to the Internet seems to be sexier than hot pants these days, Microforum could be more than a passing fad, according to analysts. David Wong, special situations analyst at Canaccord Capital, has a ''buy'' on the company based on its fundamentals. He noted that the stock already passed an earlier target and said he has a 12-month share price target of C$3 based on Microforum's sales. Microforum, which has already traded above C$6 in the last few years on the Toronto Stock Exchange, has undergone a major transformation from a software publishing and electronic games magazine-related company to its present form after it bought a marketing company. Wong, who analyzed the company's business, pointed out that Microforum also benefited from a recent shift of investor interest to diminutive and mid-capital companies from blue chips. ''There's a switch-over from a larger cap to a small cap'' in the market, Wong said. Adam Adamou, an analyst at Taurus Capital Markets who likes the stock, added: ''The company is basically running full steam ahead.''<<<