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

To: John Parillo who wrote (10881)	5/21/1998 11:51:00 AM
From: tony	Respond to of 14631

6

To: John Parillo who wrote (10881)	5/21/1998 12:13:00 PM
From: Robert Graham	Read Replies (2) \| Respond to of 14631

I am going to cover my CALLs sold short at 6. So 6 is how far down I think this stock can move. I suspect the preferred shareholder will reevaluate their selling plan of the common they have converted to and set a lower target price. They can afford to at a conversion price of 4. So I think what this means is that after this selling is over with and the price recovers to some extent, there will be additional selling encountered by the time the price reaches 8. Note that the speculators who are playing this stock for quick profits. They were playing the stock on the expected bounce. Now the profits they are managing is quite small dues to the current trading action on the stock. Every time the MM attempts to move the price up, trading activity diminishes, and when the price is moves down below 7, trading activity increases, which I believe are sales. If this is true, the MM has a net positive amount of stock which he (and speculators) will try to unload at a higher price. The MM has been able to get on the average only a 1/16 profit on the spread which is very little in a situation like this. Given this and the stock being technically oversold, I expect a move up of the stock to happen when the selling activity abates to perhaps 7.5. But I do not think we will see a price above 8 with this stock for awhile. Just some thoughts. Bob Graham