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

To: Robert Graham who wrote (10936)	5/22/1998 4:35:00 PM
From: Robert Graham	Respond to of 14631

Interesting look at the trading on IFMX stock. It has continued to trade in a narrow range which has now dropped to below 7 under smaller volume. IMO this means one of two things: the MM is accumulating and at a good opportunity will facilitate a rise in the price of the stock, or there are simply no buyers of stock at this level except the few speculators scalping fractions of a point for profit. Low of trading range has been 6 13/16 and the high has been 6 29/32. So the MM has been flipping for less than 1/8 of a point and at times 1/16 of a point. Something suspicous to me about this, particularly the MM of Informix which IMO is a very good MM at managing the trading action of this stock to his benefit. Also in my previous post, I forgot to mention that given what now has happened with the earnings restatement, not only has credibility been damaged, and their "Credit Facility" called more into question, but also under the continued financing of their operational expenses. In other words, if you were the company that had been financing the operational expenses of Informix through the purchases of the convertible preferred, would you continue to do so be exersizing more warrants to purchase more convertible preferred to then convert and attempt to sell the common in the open market when there are currently no buyers at 7? I think once the price moves close to 6, either the financing through convertible preferred will stop for the time being, or the rest of the convertible preferred will be purchased and converted and dumped on the market. Either action will have bad consequences to the common shareholder. Time will tell. Comments welcome. Bob Graham

To: Robert Graham who wrote (10936)	5/22/1998 5:34:00 PM
From: Mark Finger	Read Replies (1) \| Respond to of 14631

Robert, I just see the departure of E&Y as getting rid of the last of the group around Phil that needed to be gotten rid of for the events leading up to the Q1 97 disaster. At present, the only top individuals I see around are Stonebraker and Saranga, who are both on the technical side of things, and not responsible for the errors in marketing, sales and accounting (and I am strongly in favor of keeping both of them). Personally, I can understand sneaking some things past the accountants, but $45-75M of barter sales at LIST prices is not one I can believe. I am not an accountant, but one of the first things I asked when I heard about the barter was what was the price basis for the exchange. When I heard that it was list, I knew that something fishy was going on. If I, as a programmer, can come to this conclusion, then why cannot the professionals do the same. Barter is supposed to be done at some level of reasonable market value, and list price is NOT REASONABLE. Since E&Y let this go through in their audit of 1996--which they signed with no stated reservations, what does that say about their professional conduct? No wonder they are named in the suits. They failed in their responsibilities to the board and the stockholders and definitely deserve to be let go. I have been expecting this announcement, and felt that it was only a matter of time, just like the getting rid of Phil. Then for them to say that there was an annomaly on the day after they are dismissed is just one more example of their failure to properly produce. Mark