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 (7261)5/24/1997 11:41:00 PM
From: Michael   of 18263
 
VB fairly values ZITEL>
There is about 200 billion lines of COBOL to fix. I would say 25% walk away.
That leaves 150 billion lines. 20% is not addressable by automation whatsoever.
That leaves you with 120 billion lines. Of this, assume that M/D will get 2.5%
of the market. That gets M/D converting 3 billion lines of code. Assume M/D
gets 15 cents a line since they fix only about 1/3 of the problem .That gives me
450 million dollars in revenue.. Assuming a 20% net profit margin, I get to
90 million dollars in net cash at year 2000.
Zitel gets only 33%, so you are left with 30 million dollars. With 15 Million shares
you get $2.00 a share valuation in Zitel for its MatriDigm holdings. At that price
the $25 million dollar convertible bondholder moves in to collect his money
converting bond to 12.5 million shares taking control of company to make sure
he gets his money. Shareholders will be left holding worthless stock certificates.

Your Friend, VenturaBay
PS I just took 50% off of what Hypesters have claimed.
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