Warren,
>>3. Jan 1, 1998 is the target most installations have as the START OF THE TESTING PHASE ... this allows plenty of time to iron out the bugs ... and get user acceptance ...
This leads us to about 1 year and 3 months, starting now, for a company to do its assessment and actual conversion ... Now ZITEL is coming up with a product in early 1997 which will aid in the conversion process ... they have HALF A YEAR TO BE A BILLION DOLLAR COMPANY !!! ... <<
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Zitel does not have to be a billion dollar company for investors to make money. The current market cap is about $320 million. If, as some have claimed, Zitel's software can convert code at breakthrough speeds, I don't see time as a major problem. Secondly, I believe a significant percentage of companies will not make the Jan 1, 1998 deadline to start testing.
If MatriDigm's product does what some claim, they will have no problem selling their product. Y2k projects are under intense time pressure, and people will buy Zitel's product if it can save time during the conversion process. In addition, it's worth nothing that Data Dimensions CEO Larry Martin, a respected Y2k expert, has already called MatriDigm's product "excellent." [Source: Bloomberg]
Kevin Schick, the Gartner Group analyst who brought critical early awareness to Y2k, said Matridigm's technology is "the hottest technology I've ever seen." [Source: The Stewart Report]
If any investors are short ZITL with the simple idea that "the stock price is too high and everyone's being fooled," I would caution them if they haven't done the proper research. Most of the time, the market is not that stupid. I don't think ZITL went from 10 to 40 in a few months because of baseless information, as the shorts claim. However, the shorts may have a point when it comes to valuation, now that the stock has quadrupled.
Philip
Disclaimer: This information is for discussion purposes only and is not to be construed as investment advice. I make no guarantee as to the information's accuracy since I cannot guarantee the accuracy of my sources. Do your own research. Invest at your risk. |
