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Technology Stocks : Zitel-ZITL What's Happening

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To: Russian Bear who wrote (16834)	7/27/1998 10:12:00 AM
From: Marconi	Read Replies (2) of 18263

Hello (Privet) Russian Bear: I had a hard time wading through ZITL storage division separation from ZITL: biz.yahoo.com The press release makes it sound like there is a real business there--but did not mention declining revenues, negative margins, or the Unisys unit volume of this year compared to last year' "sales to Unisys users grew 24% last year which resulted in a 25% increase in its share of this market segment", which implies growth, but actually represents a narrowing by the carefully worded release. The terminal royalty payment from IBM of under $1M would cap the storage division at less than that amount. Without a price, or consideration, very possibly was a giveaway. And with Mr. Diggins' representation "Vance Diggins, President of GTG, explained why GTG was interested in acquiring SST: ''We saw that the company had a talented management team and a long history of success selling storage systems to customers in this market, and concluded that they are well structured for this specialized business. This should be strengthened with the backing of GTG and the global customer base and distribution support structure provided by the other ten Gores companies. ", my guess is that GTG is likely in the same league as ZITL in terms of misleading hype versus performance. Short GTG if it were possible. My guess is they probably share many of the management pathologies of Zitel.... Still no material information. The conspicuous absence of it highlights the very poor management practices of Zitel. If I recall, Mr. Babb predicted Zitel would issue at least one diversionary press release before releasing the expected dismal quarterly results. This makes two now. An accurate call on the misleading stinkers 'operating' Zitel. Best regards, m

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