Juan,
Here is the requested copy, I am not trying to break any laws in
posting this as I am only hoping to help other traders.
11/13 19:19- SGA GOLDSTAR RESEARCH, INC. 11/14/96
$$$CALL SGA'S OFFICES @ (615) 370-3239 FOR COMMENTS OR QUESTIONS$$$
SGA GOLDSTAR WHISPER STOCKS...THURSDAY, NOVEMBER 14, 1996
ZITEL CORP. : (ZITL) $46 1/2 Up $5 7/8 and traded on the NASDAQ Stock
Exchange.... SGA originally recommended shares of Zitel Corp on April 26th at $16 3/8 per share. Those of you who have held on to your
position for the last six months are now up 184%. In yesterday's
trading, shares of Zitel made a strong technical breakout on a point
and figure chart by closing above the previous 52 week high of $44.
Yesterday's strong breakout should take the stock several points
higher in the near term.
If you add to your position, we would try and do it on any pullback or on any weakness which would hopefully create a buying opportunity.
Our source still maintains that this one could be a $100 stock. The
company has solutions for the Millennium problem. The Millennium
problem relates to a flaw in computer programs and database files
which computer programmers programmed in software and operating
systems of computers using two digits rather than four digits for year
dates. In other words, rather than programming 04/26/1996 for April
26, 1996, operating systems and many software programs are programmed
as 04/26/96.
When we reach the year 2000, this flaw could render
entire computer systems - all personnel, accounting, insurance,
pension and inventory record files, among others - inoperable on New
Years Day in the year 2000. There is no simple solution, because the
problem is encrypted in computer language, and each line of the
computer code that manipulates a date must be changed by hand. As we
understand the problem, it will impact every computer
in every institution, corporation and government agency in the
world!!!
Your Visa or MasterCard balance will calculate 100 years of overdue
payments!! The same applies to all savings accounts. Telephone bills would be drastically impacted, as a telephone call placed on January
1, 2000, would register 53 million minutes of charges!!! Flights will
be canceled, as planes are flagged by computers for overdue
maintenance. IRS computers will add 100 years of back taxes to your
income tax returns. Social Security checks would be issued to 33 year
olds, while being canceled for retirees. Similar problems will occur
on your home mortgage, insurance, annuities and dividend payments. The
Gartner Group, which is an information technology firm in Stamford,
Connecticut, has estimated that the market for repairing computer code
language to address this issue is $400 to $600 BULLION!! We're told
that the problem is very unique, as it has a time limit in which the
problem MUST BE SOLVED! The year 2000 will arrive and the problem must
be fixed no later than January 31, 1999. Industry analysts believe
that 20% of computers in existence will begin to become affected by
the Millennium Problem sometime this year, with the other 80%
developing problems as we approach the year 2000.
SGA noted to you when we recommended purchase of ZITL on April 26 at
$16 3/8 that an announcement which the company made last November had
gone unnoticed by Wall Street. ZITEL announced that it had completed a
$3.35 million investment and technology agreement with MatriDigm Corp.
Under the terms of the agreement, ZITEL owns a 37.5% equity interest
in MatriDigm and will receive exclusive rights to use the underlying
technology to develop new products. ZITEL will also sub-lease facility
space and provide administrative support to MatriDigm. MatriDigm will
focus its business around COBOL maintenance and re-engineering.
According to a U.S. Department of Commerce study released back in
November when ZITEL made this press release, it was estimated that
this market would be a $100 billion annual market until the end of the
decade! Investors seem to have finally "noticed" Zitel Corp. as the
stock has been on a torrid climb for the entire month of October. In
tomorrow's commentary, we'll have a complete update as to recent
events surrounding the company. For additional information and a
complete due diligence package, call the company at (510) 440-9600.
The company's address is 47211 Bayside Parkway, Fremont, California
94538. |
