I guess you are being sarcastic, but thanks for the opinion.
But, I will start shorting anyway. My reasons are:
1) After reviewing their earnings report dated Oct 28th and
past two years stock chart, I could find any logical reasons it
broke it's moving average of 13.
06/96 06/95
Revenues ($M) 18.40 19.70
Operating Profit ($M) 3.70 5.30
Net Income ($M) 3.80 8.20
Earnings per Share ($) 0.24 0.55
Currently, ZITL has a consensus of 3.0 (1=buy, 5=sell) where the
industry average is 2.09.
2) Recently ZITL's been receiving it's popularity in terms of
"shorting", "troubled", ... etc. Not a good sign.
But, I do recognize that it's been going up nicely especially
past couple of days. TOO nicely.
3) I have BS in both EE and CS. I have been working in the industry
past 6 years and am well aware of the year 2000 related problems.
Although, I have not looked at what ZITL has to offer but
I highly doubt ZITL's whatever can provide complete conversion
solution. The whole conversion process will still require a lot
of manual changing and testing. And, I really don't think the
conversion work will start in 1997, therefore there won't be
much revenue in short term.
4) There are other capable companies who can develop such conversion
tools. i.e Microsoft probably rather develp it than buy from
ZITEL.
5) After losing some money on TLTK scam, I kind of understand how
these stocks can go up more than 700% in less than 6months without
supporting earnings, but purely on hypes, promotions, ... etc.
All hype driven stocks have ended up in the same place including
TLTK, IOM, ... etc.
I have recently built some cash positions(not much) in case of a
market correction (had one in Jan and July; I think one is due soon).
I think I will start shorting ZITL tomorrow.
Good luck trading and keep me honest!!
Jin |
