I heard through a consultant working for Informix that the CFO is going to take a number of charges this quarter to clean up the balance sheet. This was told to a number of people at a lunch table at the Berkeley Faculty Club - so I don't feel it is "inside" infomation - it was in a public forum. Take it for what it is worth. I'm a long holder (bought way above 10) so I'm not trying to short the stock. He did feel that the long term for IFMX was very good because the CFO is really cleaning things up, and their product line was selling well.
If you were trying to buy less than 20 contracts and the price you was willing to pay was the ask price, then the market makers on the CBOE are required to take the trade. However, if you are trying to get a price at less than the ask, then they aren't required to take the trade. I traded options for years and learned to buy at the ask and sell at the bid. This way my trades always go through. Otherwise, I would have lost a lot of trades trying to haggle over an eighth of a point.
I think this decline in stock price is good. Normally, this stock has a pre-earnings run-up and then declines when the earnings come out. Maybe, the opposite can happen this time. The price goes down till the earnings announcement, and then surges when the earnings come out.
On the other hand, maybe out this little doggie is just showing anyone who�s the boss. :-)
I too hope his information was inaccurate - but as I said, he was very bullish in the long term. It was a comment in passing - people often sit around large tables at the Faculty Club and discuss their research, etc. He mentioned he did consulting for high tech companies including Informix, and my ears perked up. I don't know if he heard the "balance sheet clean-up" through the Informix grape-vine, or if he talked directly with the CFO.
As for the price of IFMX, another clean-up of the balance sheet might actually be good, if Wall Street feels confident that all the bad news is finally out. Depends on the extent, and the forward looking statement.