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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Mark Finger who wrote (10510)	4/30/1998 11:48:00 AM
From: bob zagorin	Read Replies (1) \| Respond to of 14631

mark, i tend to agree with ou and, IAE, i think we're focusing on the wrong thing. i think IFMX is held down by a "recent history tax", a reverse premium until they establish credibility of performance. that's why this q is so important. if they have a good q it will set the stage for the stock to begin to rise to the high teens but there might be a short term "sell on the news" reaction. that won't last long. if they disappoint, it will set them back significantly. i'll hold thru the earnings because i have confidence in finocchio.

To: Mark Finger who wrote (10510)	4/30/1998 12:19:00 PM
From: Robert Graham	Read Replies (2) \| Respond to of 14631

I have been writing MAY 10 CALLs on IFMX. IFMX has overhead supply of shares waiting to be sold at 10 to 10 1/2. Short interest already has appeared to halved. Sentiment is running high with the speculators where this option was selling at 1 point today with good volume and a current open interest at 28,000. This represents the control of $28M market value of stock (2.8M shares). The stock intraday is currently showing a downward bias, so the stock is not responding very well to overhead resistance at this point in time. This is good CC writing scenario. The wildcard is the soon-to-be-released earnings report. I would be very surprised if they beat or even made last quarters earnings. However, if this stock continues to report positive earnings, and there is positive forward guidance, I think there will be more interest brought to this stock and perhaps the larger money will start to accumulate this stock. I do think that even though I currently have some reservations on the current management of Informix, I believe that the outlook is much brighter now for this company, and public sentiment has substantially improved. Otherwise we would not be seeing 10 and short covering. However, I think the positive public sentiment that we have been witnessing leading up to this earnings announcement is primarily from those who have been already long IFMX, and from the very short term speculators that have been purchasing my CALL options who are making a play on this earnings announcement. Bob Graham