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Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: Nelonline who wrote (18057)	10/18/1999 7:43:00 PM
From: Daniel Chisholm	Read Replies (2) \| Respond to of 18263

Robert, Fair enough, though I might "counter" by observing that Zitel paid about $12M for the business a year or so ago. One might argue that they (Zitel) were flush with cash and desperate to buy a viable business with the cash they were able to raise only through the grace of their (temporarily) strong stock price. If you buy this hand-waving attempt at devising an "upper bound" of the fair value of Datametrics a year or so ago (and I'm by no means suggesting that it is a rigorous argument!), it would be difficult for me to see why they should have doubled in value in such a short time, especially since their (Datametrics) business results have not been spectacular. I'm not trying to be argumentative, just trying to figure out what a genuine fair value would be. Since I'm a cautious shortseller, I very much appreciate thoughtful comments (such as yours) that help me to decide when/if to cover. I must confess I don't really have a good handle on the quality of the present Datametrics business, or its potential. When I tried to read the various press releases and SEC filings about them, I admit that it did not appear to be very exciting or fascinating to me. It would certainly be a mistake though to allow my inability to "get it" to make me overlook a good business. Do you have any ideas or opinions on Datametrics, its industry or the quality of its management? Can they, at the very least, break even for the next number of years? They'll pretty much have to, because Zitel may not be able to raise new cash as easily as it has in the past. - Daniel