Briefing.com:Information Management Associates Inc. (IMAA) 12 1/8 +1 1/4: Interested in a momentum stock? Take a look at the chart of this developer and marketer of customer interaction software. The stock is up more than 210% in the past week and the stock continues to attract investors as more than 6.8 million shares have already traded hands today, well above its daily average of under 400,000. After being stagnant for much of this year (trading between $2 and $4 per share), the stock began its upward move last Friday when the company received additional financing from a major investment group, Wand Partners, who already owns a 31% stake in Information Management. Later in the week, the company revealed that its buyingedge.com unit had also received $10 million in secure financing from At Ventures, an affiliate of the Internet venture fund CMGI (CMGI 80 9/16 +1 13/16). The news that the company has been able to secure additional financing, especially from a reputable Internet venture fund, has prompted investors to double, if not triple their exposure to this issue. Of course, for long-term investors, the movement in the stock is a much welcomed reprieve in what has been a dismal performance for this issue. After going IPO in July of 1997 at $13 per share, the stock has traded under $10 for much of its short life as while sales have grown by 30% or more for each of the past two years due to an increased number of licenses sold, losses have widened as the company has incurred increasing development costs. The fact that even at this stage of development Information Management can secure financing is a welcome sign and the reason why some investors are willing to gamble that a small purchase now could become a substantial amount in the future. However, given the "hot money" that is pouring into this stock, it would not be surprising to see a pull-back occur, even with the improved financing outlook. Momentum money can move around very quickly and it would not be too surprising to see this stock fall to the single digits again when this money moves on to more fertile ground. Even so, IMAA is having a very good upward run that is on its sixth day and which should allow long-term investors to exit the stock with minimal losses. - RN
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