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

To: MileHigh who wrote (10769)	5/12/1998 6:33:00 AM
From: Robert Graham	Read Replies (2) \| Respond to of 14631

Instead of selling my stock, I am going to agressively write covered CALLs. Any CALL options of mine that may be exersized will lighten my holding in this stock. Bob Graham

To: MileHigh who wrote (10769)	5/12/1998 9:36:00 AM
From: RDH	Read Replies (1) \| Respond to of 14631

Mr Mile, Don't look for Informix to dominate, but do look for Informix to thrive. Their Web and DataWarehouse solutions along with Informix continuing to improve their marketing and increase their consulting services will provide increasing revenues over the next five to ten years (IMO). Informix's recovery should be slow and steady. That is why Bob and others (including myself) have been able to write covered calls and get away with it. I think one difference between Bob and I is that I have been aggressively being Informix shares through Jan. 1998. This strategy has paid off handsomely -- the combination of buying more and writing covered calls (when Informix is in the 9 to 10 range) on a portion of what I buy (so if it does get called away, I still have some goodies left). I would not sell, but would recommend either Bob's strategy (which he has detailed quite well -- he approaches this very intelligently so that he minimizes the risk of the stock getting called away and at the same time increases the premium he is paid for writing the calls) or just holding on or buying additional and immediately selling calls (which will give you better returns than buying bonds with only slightly more risk). I would not recommend outright selling of this stock (look at what a nice return you get for buying it at its current price and immediately selling Jan 10 calls -- not the best way to play this recovering stock (it will probably be around 12 to 16 by then), but perhaps the safest). Many investors are still overlooking this stock, due to fundamental factors, like its low book value, it current low income level, its current low revenue, past problems, etc. But, IMO, the demand for Informix's products and services will increase slowly but steadily over the next five to ten years. - RDH.