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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (7322)	8/10/2000 2:01:21 AM
From: Bill Wexler	Read Replies (1) \| Respond to of 10293

ZIXI is a crowded short. I agree that it is pure crap, but I've always been scared of this stock. This is the exact opposite of a situation like Earthshell. In ERTH's case, we had a fraudulent technology hyped to absurd levels; however, we knew that most of the float was controlled by one of the Kashoggi brothers - a greedy crook who would waste no time unloading the stock to retail investors...so the stock behaved "correctly" and collapsed despite the best attempts of its underwriters to keep the spin going. In ZIXI's case, we have a technology of questionable value but - unfortunately - you have guys like Cook and Huizenga who have absolutely no problem keeping this thing an airball for a long, long, long time. You have to be careful with individuals who may have nearly religious beliefs about their business acumen (Huizenga), and sufficient knowledge of stock mechanics to keep short-sellers on the run. You've got 4 mil. shares short here, a float of 11 mil. and a very stubborn individual with deep pockets who will not permit new supply to enter the market easily. Furthermore, you have the stock holding up reasonably well in a market for net stocks which is just about at the point of maximum pessimism. If net stocks lift off, the squeeze could be painful. In the long-run you will make money if you can hang on, but in the current market climate - and if I were running a hedge fund - I would probably do the counter-intuitive thing and buy calls.