Re:Zitel -slice of pie/other Y2K
Rise of stock (speed of train) has created wonder and possibilites, attracting host of often meaningless chatter and top calling martyrs like Rick , Jimmy, and Que willing to throw themselves in front of train to hopefully win plaudits when the stock corrects... actually an uncovered short seems about as sensible as trying to catch a bullet.
So.. facing up to facts, remember MD and Y2K is a slice of the data storage package Zitel has compiled, a seed from which it will build and grow. Old timers will remember Godzilla and the LRS, Chaings magical solutions at PacTel, and King's Bill Gatesque vision of data movement in the next decade. High priced shares (Zitel) and cash flow (MD) will enable any missing piece to be acquired. Dates will be fixed, yes, but data will also be migrated and major partnerships will become ventures. Cache will finally be understood by customers, interfaces will truly be open, storage pricing will have fallen to <$1/MB and Zitel will be leader in offering superior performance and price . More credible as Company, Zitel will soon become a formidable competitor to EMC, serving a storage market soaring from $1B to near $100B in next decade. Remember stocks sell on basis of future not past cash flow. If EMC is worth over $8B, I don't have a problem with Zitel's storage business in the near future selling for for 10% of EMC. In the high end segment head to head competitions by 1998 I expect them to win 20%. Zitel's business slices are complimentary and worth more as a whole. Good night and let's hope there is a pause in rate of climb so we believers aren't tempted by investor sense to trim portions, sell covered calls, etc Good night. Happy Holidays. |
