Zitel-ZITL What's Happening Message Board

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Technology Stocks : Zitel-ZITL What's Happening

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To: Jacques Chitte who wrote (17875)	4/20/1999 6:38:00 PM
From: Michael	Read Replies (2) of 18263

The $64,000 Question <<More to the point, how long will they be able to keep operating without an infusion of assets? Thanks,>> Zitel must be able to sell convertible bonds to vulture investors who then sell into the open market for the cash that Zitel needs to operate. These are two different numbers one must consider for plotting on a day of bankruptcy for Zitel. One number is the amount of money on daily basis that can be sold to the public at large. With the price of Zitel now at about $1.75 coupled with average volume of 300,000 one must try to figure how much cash can be squeezed out of a total dollar volume of $525,000.My guess is that if one can manage 10% you would be doing a good job of dumping your shares on the open market without totally killing the price of Zitel. That gives Zitel at best $50,000 a day or $250,000 a week at today's price and volume action. Zitel's current cash burn can be roughly figured at still $2.67 mil. a quarter This just released lose report shows $5 mil. received from convertible bonds disappearing into a black hole, for the cash assets have declined by $335k to $6.25 mil. , over a 6 month period. Until Zitel releases it's 10Q for this past quarter one would be premature to predict a date for Zitel's demise. But the day will come :) short to zero, never cover :))))) Sure is a Nice day Michael

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