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Technology Stocks : Zitel-ZITL What's Happening

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To: Reno Frazzitta who wrote (523)10/30/1996 3:10:00 PM
From: Serguei Artiouchkov   of 18263
 
Sorry, Reno, but ZITL has nothing to do with 286 clones. Not even OS/2 or UNIX machines. We are talking about mainframe and COBOL code. Nobody in mainframe business will go even close to 2000 without taking care of this problem one way or another.

Also, most of the COBOL programs on the market (I would say, 90-something pct.) are under manufacturer maintenance. That means companies, running mainframe application are getting upgrades on a regular basis (version 3.2.2.1.1.2....). I would assume that the big manufacturers, like IBM, would not rely on some small company solutions and develope something of their own. Or maybe buy some solutions if it's not expensive. No matter how many lines of code exist nobody will let MatriDigm grab a lion's share of the market. Not even a mouse' share. And again, this business will affect only 1.5 - 2 years of earnings. The market looks at at least 5. The momentum, however, can last for some time...

Regards,

Serguei
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