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Technology Stocks : Zitel-ZITL What's Happening

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To: Tech Master who wrote (17229)10/6/1998 9:24:00 AM
From: Daniel Chisholm  Read Replies (2) of 18263
 
TM,

<<The value of MatriDigm today is less important to ZITL than the value of MatriDigm within the next few months. The issues you raise are reasonable but you fail to consider the value of the acquired company when Y2K reaches the panic stage. Do not discount this factor.>>

Fair enough. It's just that I think there won't be much panic buying of MD's COBOL remediation services, and even if there was a large surge in opportunities for them, they would be unable to ramp up fast enough to earn the $50-$75 million in the remaining 15 months that they must earn, in order to break even on their Y2K investment.

I've just started to read the 8-K, and the opening paragraph strikes me as fishy. The merger is a 3-way merger, with one of the parties being Zenith Acquisition Corp. (!). Whatinthehell are they doing here?

- Daniel
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