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: Sabrejet who wrote (7977)6/6/1997 1:21:00 PM
From: CalculatedRisk   of 18263
 
Richard, and more information is coming soon in the ZITL saga:

1) acquisition 8-K (next week): this document will reveal the terms of the deal (how much dilution) and, hopefully, the earnings of the companies being acquired. We should expect earnings of just under $1.0M based on the purchase price of $12.5M. Unlike the debentures, the shares should be priced at fair market value with a fixed conversion rate.

2) S-3 filings (mid-June): the shares from both the debenture and the acquisition need to be registered with the SEC.

3) Zitel earnings (around July 22nd): Q2 loss should be around $0.33 per share. This is complicated by the acquisition. And they may try some consolidation tricks. The $12.5M acquisition charge will be taken in Q3.

4) Convertible selling (August 20th): This is the start of the selling by the Cayman investors.

5) BRCP decision date (September 30th): This is the date BRCP will decide whether to stay involved with Matridigm.

Other events to look for:
1) Additional acquistions: If the stock price stays high, why not use the stock for additional acquisitions? They increased the number of shares authorized from 20 to 40 million.

2) 144 selling (end of July): this frequently occurs after a "hard money" debenture. The insiders (like Mr. King) are blacked out from now until 3 days after earnings release. IMO, Mr. King will not sell (but others may), since, if Zitel gives up on MatriDigm in September, he might be required to disgorge all profits.

Great report from Ted. Regards, Bill
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