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Technology Stocks : Zitel-ZITL What's Happening
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To: Gary S. who wrote (7360)5/27/1997 9:52:00 PM
From: Robert Lawkins   of 18263
 
Gary,

The "solution" to the problem is labor intensive. Even if it does require substantial outlays by a company to diagnos and repair, the $$$ will be spent on programmers time. This basically means that the margins for this type of business will be very slim.

If it is like you say, that the contracts will need to be negotiated individually, then this can't be good for the company. If I were short this stock, I would be very afraid of the "silver bullet". What they offer is a temporary employment agency for as many COBOL programmers they can hire.

The problem is labor intensive to fix. It many generate large revenues but the margins will be very slim and the revenue source runs out in less than three years.
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