Paul, traders like you are going to make money on this stock, with its wild daily swings ... I get a piece of the action every now and then, but my bias is more towards the short side ... unfortunately, I have a day job, and people are saying i'm bound to double my rate in the next 3 years ... I won't fight them, in fact you only need a year's worth of COBOL experience to be able to convert code to Y2K-compliant ...
Speculators, I don't have a problem with them too .. I like gambling too ...
My problem is with people who talks about Zitel in terms of fundamentals ... and seem to believe what they're saying ... well for them I'll throw in some numbers :
1. With today's earnings, Zitel without Matridigm is at best a $5 stock
2. Today's closing price of $38, implies that Matridigm's value is $785 Million (using Zitel's revised 33% equity, and 7.855 million shares)
3. From looking at Zitel's 10-K, there are 10 Million common shares authorized ... and you can bet that Zitel will make full use of this new purchasing power ... so using these numbers now gives Matridigm an implied value of ... $1 Billion
4. Now, originally Zitel had 37.5%, then 35%, now it's 33% ... are we seeing a pattern here ... at the rate it's going, Zitel is on track to just own 20% of Matridigm by the time the 'BIG' dollars start coming in ... let's see how 20% fits into the equation ... (assuming Zitel stays at $38, 10 M shares) ... $1.65 Billion
I'm just puzzled at how Zitel just let's it's stake diminished ... so I checked the 10-Q and saw the Matridigm transaction, and it looks like what Zitel purchased are preferred shares of Matridigm ... does this mean they don't get to vote ... being a private company, it's hard to scrutinize Matridigm's records, but from the looks of it, somebody's getting it from behind
AS YOU CAN SEE, I LIKE NUMBERS :
Question now is:
WHICH WILL HAPPEN SOONER ???
a. Zitel's stock price going to $100
b. Zitel's stock price going to $10
c. Zitel's stake in Matridigm going down to 20%
d. Zitel's outstanding shares going to 10 M
e. Jan 1, 2000
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