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Technology Stocks : IFMX - Investment Discussion
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To: Tony S. who wrote (13905)2/8/2000 6:14:00 PM
From: johnlea  Read Replies (2) of 14631
 
i agree ifmx is likely to trade is a fairly narrow range until this is resolved. ifmx is in a 'no win' situation AGAIN.

- if they give in to ibm, they pay licensing fees.
- if they don't give in, they spend resources on a defense.
- and if they lose a court case . . . look out below.
- if they win, the stock hopefully gets back to where it should be.

under all scenarios, their operating costs go up at a time when they can ill afford it, and they are AGAIN being publicized as a company that has broken the law. this is probably EXACTLY why ibm chose to sue them versus some other company.

while i think the stock has the potential to double (30) within 18-24 months, this type of event can turn that belief into fairy dust. we'll have to wait for some time and see how this plays out (unfortunately).

johnlea
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