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Technology Stocks : Zi-Corp (ZICA), formerly MCUAF

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To: Softechie who wrote (1367)9/13/1999 4:41:00 PM
From: Blair Magnus  Read Replies (3) of 2082
 
"Zi dropped their lawsuit against Tegic because it didn't want to waste money on lawyers"

Senior management in both the annual report and the Sept. CC mentioned the intellectual property protection lawsuit. Although they could not discuss details, they made a point of representing to the public that they were pursuing Tegic. From this, it is reasonable to assume that management has identified this as a significant strategic risk.

If your statement is in error, then we must assume that this risk has now become a reality, and we will be forced to see how they will reposition. This could have a significant effect on future revenues (sell/short).

If your above statement is correct, then we could conclude that management has intentionally misled the investors. I find this hard to believe, but if it is true, then we should revert to the old saying, ?once a liar, always a liar? and reconsider our current perception of Zi (sell/short)

Another view would be that management honestly thought that there was infringement and subsequently realized they were in error. This would add to a growing perception that this company is being run by sub-par executive (sell/short).

An optimistic view on this is that the recent advances in Zi?s relations and agreements with PRC has deemed IP protection insignificant, and thus not worth the cash. This could be a strong signal that Zi believes they are firmly entrenched in the market and are satisfied with the current revenue stream from the many agreements announced recently (accumulate).

Good Luck.
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