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

To: investorgal who wrote (11136)	6/25/1998 12:48:00 PM
From: Mark Finger	Respond to of 14631

>>Could you clarify what you mean by the last 2 lines of your post? I >>think a word or 2 fell out if the sentences. This was a comment on why the $6M "slipped through the cracks" and got posted as current sales instead of being put in the category with other VAR type cases. In the past, the comment was that management had little or no motivation to do that, because they had enough without it to significantly beat the consensus numbers--they were forcasting losses of 2-4 cents, and break-even would have been good, especially considering it was Q1. However, we now know a possible reason, in that they needed the sales to meet the $150M of new sales for the A/R credit line. Without that $6M, they did not meet the criteria. I feel this casts a different light on things. I had hoped that we got rid of all the fraud of this type with the people who we got rid of. Finding this out has really given me a queasy feeling, because I am not sure I can justify the $6M as just an "honest mistake". Mark

To: investorgal who wrote (11136)	6/25/1998 12:50:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 14631

Yes, this makes the most sense to me. When the news about the misbooking of revenue came from their "trusty" accounting firm, they had a decision to make. Knowing that this would place them below the requirements of their credit line, they would indeed negotiate with their creditors before making a move. Now I wonder what Informix management would of done if their creditors did not allow this adjuestment to their agreement? I think it was likely that the creditors would agree to this change. But if the creditors did not allow a renegotiation of the credit terms, would the management of Informix still go through with the restatement? After their renegotiation attempts, the creditors would of been tipped off anyways. But it still is important to renegotiate than rebook the earnings and than begin negotiations at a realized disadvantage. It looks like there was additional buying when IFMX dipped to 7 3/4. The price then encountered resistance at 8. I am sure the buyers will come in again in anticipation of the stock will break into new ground. At this light of a volume I would not be surprised if some traders take the price up in an attempt to attract more buying into the stock. This can come in the form of buy stops hit, actual or mental. So far the range of resistance that has been validated is 8 to 8 1/8. The price should be making its next attempt any time now. Right now IFMX is in a "holding pattern" under very light volume. Volume is increasing as the stock remains in its holding pattern. I think the move of the price is about to happen. Lets see what direction the price goes from here. Isn't this sounding like a day at the horse races? Bob Graham