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

To: Robert Graham who wrote (11133)	6/25/1998 9:55:00 AM
From: Mark Finger	Read Replies (1) \| Respond to of 14631

Robert, Be careful because of the earnings to be released before then. You could either be well below 7.5 or really miss a move up. Read the conditions on the A/R credit line in the last 10-Q/A. One is that they must report a minimum $10M operating profit this quarter. I estimate that this calculates out to at least $.04 (maybe more) after tax profit, which is at least 1 to 2 cents above the concensus estimates. I do not sense the endless optimism on the part of some people this time, so this could be a significant surprise and cause the stock to break $10 and possibly hold up there. However, on the other hand, if they report even the $.03, the news that they missed the target would probably send the stock tumbling (I think to the $5-6 range, or even lower). Right now, if you look at Sybase, their price is well below what sales and the breadth of product line would indicate (market cap is less than .66 of sales). I believe that repeated major disappointments have destroyed investor confidence (I count it as 3 major disappointments). In contrast, I believe that IFMX has had 1 1/2 on that scale, but the next two quarter reports are critical, and failure is very clearly defined (as in the 10-Q). IFMX had better meet those requirements or they are in deep @)(#&. Mark

To: Robert Graham who wrote (11133)	6/25/1998 10:00:00 AM
From: Mark Finger	Read Replies (2) \| Respond to of 14631

To all, Read the 10-Q/A for some very interesting stuff about the $6M restatement. Apparently before the restatement, IFMX met all the requirements for their A/R credit line. However, after the restatement, they failed to meet the one on "new" sales (actually I felt some of the projected numbers were a little high). Apparently they got the lender to agree and that number has been adjusted. The key here is what the incentive to mis-post the $6M entry. This really indicates who could benefit from that "mistake". Mark