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Technology Stocks : Identix (IDNX)

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To: brad greene who wrote (6286)1/21/1998 6:18:00 PM
From: Hockeyfan  Read Replies (2) of 26039
 
Random observations -

Item #1 - IDX put option volatility is currently higher than call volatility. This is a very unusual phenomena for IDX options which I have been following closely, painfully for the past year. I belive the options traders are saying that there is more potential future volatility on the downside than on the upside. This is not good.

Item #2 - Kessler (Lehman Bros.) and Usem (SSB) posted First Call notes this morning. Both said that the importance of this contract extends beyond the dollar amount and that it will become a key showpiece contract potentially meaning more more. They were notably impressed with the integration of the LS-21's with Identix's Docucolor mugshot system, the largest employment of that technology to date. This contract will highlight Identix's system integration capabilities.

No change in earnings estimates or opinion.

Kessler reiterated that 1998 could be the year that biometrics break out of law enforcement and into commercial applications.

Item #3 - Tax help. According to my 1998 Ernst & young Tax Saver's Guide, if you don't specifically identify what shares you are selling it will be assumed that they were first-in first-out (FIFO). Sorry to take so long with this answer. As always check with your tax consultant... or just ask Brad.

J. Saf

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