Warren: No, I am not a writer. I am an old tea leaf reader who competes with time and receives the short end of it.
As a pure technician, I have to call what the chart dictates. ZITL is in a long term uptrend, no if, but or maybe. Shorter term, it is consolidating which is very much different from a down trend. Echoing what Philip posted, I would like to remind you that there is a high possibility for a short sqeeze being set up. I just woke up and read the Barron's article and I would like to share my analysis with you in a cold-blooded manner (i.e. sans emotions):
Pros....
1.Hot sector strength. (...millennium madness....moonshot....)
2.Beta testing with several users (clearly implies viable products)
3.Zitel will market it when it becomes available
4.Dave Stewart's bullish comments (His track record is positive despite premature ejeculation in VIAS)
5.ZITL impressed some of those assembled in Orlando
6.Gartner analyst said some positive thing
7.Gartner analyst may join company
8.Kris Tuttle likes them
Cons....
1.High PE (64 times)
2.Disappointing profit on declining sales
3.ZITL's disclaimer
4.Tuttle's disclaimer
Now, my $699 question is: Is this a bearish article? The answer is just too obvious.
Then, my $599 question is: Who on earth in his/her/its right minds want to buy/sell based on fundamentals (PE, profit or sales)? Does any trader care about its storage sub-systems? Again, the answer is just too obvious.
So, Mr. Gates, be real careful in going against the momentum, against a fairy tale, against these beta site testers and above all, against deals being made behind closed door without your knowing them. From your postings, you seem to be young and dynamic. And I sincerely wish someday, that you will be as successfully as Bill who happens to share your last name.
Best wishes from a mad monk. |
