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To: MileHigh who wrote (10979)5/25/1998 12:23:00 PM
From: Robert Graham  Respond to of 14631
 
Yes, my statement of Chapter 11 was a bit strong. I just think it is very important for this company to generate confidence with the right people, and do this in a short period of time. That is why I am seeing this quarter's earnings report as a key measure of this effort. IMO this company is moving through its most difficult period that is high risk for the investor. So in this scenario, Chapter 11 is a possibility, but I do not see this happening in the near future. I think Informix still has a couple quarters before Chapter 11 becomes more of a real possibility. Informix has much less to start with at an advantage than other companies in their position would. IMO these turnaround efforts challenge the resourcefulness, creativity, and sales capability (selling a vision) of the leader. This is aside from their product and the demand in the market for their product which includes managing their competition that leads to the revenue and earnings the company books.

I am guarded about the near term prospects of Informix but still looking forward to the turnaround of this company. Most importantly, I am very happy that there are such things as options which permits me to manage the risk of this period of time. Options have to be the best invention to have come out in the market for traders and investors alike.

Bob Graham