SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Zitel-ZITL What's Happening
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Roger A. Babb who wrote (7231)5/24/1997 10:37:00 PM
From: gerald tseng   of 18263
 
Roger:

Sorry, previous post somehow shows nothing. I will repost now.

Follow your scenario but to the opposite side of the coin asssuming they can drive the price up from $25 to $45 ($20 difference as in your scenario):

1. convert now and receive 1.2 mil shares.
2. drive the stock up to $45
3. sell all 1.2 mil shares with proceed of 54 mil.
4. substrate $25 mil cost of convertible loan.
5. net profit is $29 mil (better than what they would make if follow your stategy)

Of course,
1. both our stategies did not take into account of the impact on stock price because the sheer size of the position. (But, it's much easier to move 1,2 mil shares than your 5 mil shares, consider the percentage it represent to the float)

2. I don't think people should be too alarmed by the discout the private placement received, that's the nature of private placement.

I seriously doubt ZITL will make a deal to hurt the company, that would not do any good to their stock option and hurt their own job security.

I think this Private placement is bullish for the stock for the following reasons:

1. Solve the cash flow problem.
2. Showed strong interest from "smart money"--positive development might be coming.
(Shorts on this thread is much more outspoken than longs. They bring out some examples like Bre-x than said the smart money is actually dumb. Read "Market Wizard", then you know if they are smart or dumb.
I happened to watch the rerun of the movie "Wall STreet" this afternoon on USA Network, and I don't think they are dumb at all. Quote a line from Gordon Geico "I only bet THE SURE THING".....)

Response to the low class taxikid reg. CAP on my previous posts:
Sorry if the upper case hurt your eyes. But your use the word "moron" is unnecessary. You bet 90% of your networth on the short side of ZITL; I hope your bet turns out right. Even then, don't sell your taxi cab, you will need it down the road, either on ZITL or some other stock.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News