CANNON &lt;CAN> AUDIT TO SHOW SIGNIFICANT 1986 LOSS

  The Cannon Group Inc said its
  financial statements will show substantial losses for fiscal
  1986 and "significant downward adjustments in previously
  reported stockholders' equity."
      The company also said its 1986 audit being conducted by
  &lt;Arthur Young and Co> will cover the year ended January 3,
  1987, instead of the nine-month period ended September 27, 1986
  as previously announced.
      It said it anticipates the results of the audit will be
  available in mid to late April 1987.
  

