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Technology Stocks : Zenith - One and Only

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To: Rich Dondo who wrote (3235)9/19/1997 3:17:00 PM
From: Scott Lerner   of 6570
 
Re: Zenith Patents

I thought you guys might want to know that the patents that ZE has on the modulation and demodulation of the digital signal (vsb) is NOT specific to HDTV. ZE will benefit from any implementation of digital broadcasting. In fact, I believe that ZE will benefit from the broadcasters bypassing HDTV in favor of rapid deployment of other digital services-the royalties will happen sooner!

This was confirmed by me in a phone conversation with Kevin Brindley from ZE earlier today.

In addition, Mark you are schmuck (parden the yiddish) for being short ZE. The long side risk/reward is very attractive considering deal potential, while the short side is maybe only good for a point. Remember that a good 10% of ZE float is short and I wouldn't want to be there for the big squeeze. Ze has too many irons in the fire and too much surprise deal potential to warrant a short position at 10. You were right at 11,12,13 but not at 10. Cover and wait for a run-up to short again if you feel that you must.

Sincerely,

Scott
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