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Technology Stocks : Identix (IDNX)

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To: Badger who wrote (35)1/29/1997 5:20:00 PM
From: Brian Malloy   of 26039
 
Badger,

In my opinion, I don't see much happening with the stock price for a while. IDX has a lot of potential. I still believe that it is the leader in its field and best positioned to exploit its advantage. It has made some acquisitons as of late that will hopefully payoff in the next 12 to 24 months but they have had a dilution effect. Additionally, even though they won the court case over DBII (and DBII is supposed to pay IDX's cost of defending themselves in litigation) it appears that they have some hefty legal fees they must pay, for something based on the quarterly report.

However, the bottom line is that EPS will be 4 cents a share or so this year if we are lucky. Until IDX begins to show quarter over quarter and year over year increases in EPS then we just are not going to see the stock do too much. Based on the price of $10 and its rather low EPS, the market is demonstrating a rather great degree of support - based on future potential - but it will not wait forever. 1995 was expected to be the breakout year and time is still ticking.

Regards,
Brian Malloy
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