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.
This company has been under a magnifying glass for the past 2 1/2 years. After two restatements, everyone knows they cannot stand another one, nor should they have any write offs. There are still some tax credits from the old days. IFMX should be a pure as the driven snow. There should be no write offs or charges it can take. I'm holding Dex to the 20% growth he talked about, and since overhead has been lowered there should be some good earnings on this revenue. I don't know why the market is doing what it is doing, but IFMX is improving everyday. This company will be in the thick of things when the real counting is done. BOTTOM LINE-- Yours is a bull Zhit story. Find another stock to short.