Steve,
the Zitel hype is just a scam. The company has minimal revenues and negative earnings. Its market capitalization is now in the hundreds of millions, way above true value. Zitel owns 33% of a privately held company called Matridigm. This stake was bought for $3.5 million.
Supposedly Matridigm has a "silver bullet" that can solve all Year 2000 problems, and will make a lot of money on it. Nobody in this thread has seen this product, tested it, or benchmarked it. Matridigm does not have a single client.
There are new Year 2000 companies popping up every day, and the competition in this sector is going to be fierce.
Claims that the Year 2000 market's size is $600 billion, or that the cost of fixing a line of code will be $1 on average are so ridiculous that I will not dignify them with a rebuttal.
The stock is very volatile. More precisely, it alternates between low volatility and high volatility periods, as it is heavily manipulated.
Do not buy Zitel stock (unless you are a masochist), and, if you have the stomach, short it or buy puts (the best choice, in my opinion).
Good luck to you whatever your decision may be. |
