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Technology Stocks : IFMX - Investment Discussion

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To: James Luk who wrote (9502)2/17/1998 7:18:00 AM
From: J Bertrand  Read Replies (1) of 14631
 
James and at,

Everyone knows how I feel about Informix. But, I have to say that I agree with James here. Informix has moved from 4 to 9 in six weeks. A phenomenal increase of over 100%. I personally believe that Informix will now be viewed as a "show me" growth stock. This means that Informix must "prove" that it can grow the business at a reasonable rate. While Informix deserves a great deal of credit for its recovery, nobody is going to buy this stock unless they know earnings are going to increase at a regular percentage. For conservative investors and many analysts, this is show me time. I believe it will happen, however, we are entering the first quarter which is traditionally a weak quarter and Bob himself said that there was much work to do. There is SOME downside risk.

I think Informix will trade between 7.50-10 until we see next quarter's earnings. To sustain a price of 9, Informix has got to show earnings growth in Q1. Investors will not remain too euphoric if Informix only makes profits by cutting costs.

I believe that there is no better CEO than Bob Finocchio. It is very obvious that Informix will eventually meet its goals. All I am saying is to be patient. It will happen. I, myself, may have become too excited after last week. If Informix does show consistant growth on the bottom line, then I fully expect Informix to trade much higher.

Just a few thoughts to consider.

Jeff Bertrand
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