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.
oct 10 calls all day long, and they won't
sell
them to me. what does that tell you?
they get
no premium in the trade, so they won't
do it.
that attitude signals we go higher, alot
higher.
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. :-)
of IFMX doing any more cleaning up vis-a-vis the
balance sheet. (Sales or revenue, yes! Balance sheet,
no.) I hope your friend's information proves to be
completely inaccurate.
No offense
intended.
Did you ask your friend where he/she got such
information? If so, what do YOU think it's worth?
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.