It sounds like what we have been referring to on this forum as a bear
trap. Although, we have been on bear hunts only during major market
corrections since it is very easy to pick off money makers as
everyone over reacts to the downward pain.
AS A SIDE NOTE! IFMX TAGS UPPER BB!
iqc.com
IFMX takes a step up yesterday. Looking at the technical variables
you will notice that the upper BB has been tagged and will be passed
today. Trading volume has been less than the previous upward push and
the RSI is starting to curve downward after a horizontal sideways move
for a few days. It will be interesting if IFMX will gap up from
current levels or pull back on profit taking.
IFMX is approaching fair value! NASDAQ: (IFMX : $12 3/4) $1,934
million Market Cap at January 19, 1999 Trades at a 6% Discount PE
Multiple of 45.5 X, vs. the 48.6 X average multiple at which the
Software & Services SubIndustry is priced.
Short interest is starting to build with 6.3% of IFMX shares
outstanding are short, requiring 3 days to cover. The serious
money must feel that there is more downside potential than up at the
current price levels. This is the first real hint that the IFMX price
gains will start to peter out because of the increased liquidity
created by the shorted shares. MMs and funds are no doubt locking in
nice profits by shorting against the box. Long holders should use
caution! You will eventually be able to short against the box, or
write CCs deep in the money. Heck! Those IFMX LEAPs are real rich!
1 Year Short Position Summary Month Short
Dec 98 9,483,427 +11 4,275,440 3 <---- shorts are starting to
Nov 98 8,519,741 -6 3,029,944 3 increase and IFMX will stall!
Oct 98 9,104,449 -14 1,444,494 7
Sep 98 10,529,459 -45 1,813,564 6 <--- shorts started to decline and
Aug 98 19,064,348 +0 1,558,908 13 IFMX price started to rise!
Jul 98 19,039,821 +1 1,449,861 14
Jun 98 18,820,684 +1 1,518,112 13
May 98 18,641,520 +2 3,503,943 6
Apr 98 8,215,243 -53 1,905,178 5
Mar 98 17,629,537 +16 2,564,921 7
Feb 98 15,200,960 +59 4,958,996 4
Jan 98 9,536,679 +39 3,171,478 4
|
