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Strategies & Market Trends : ZixIt Corporation (ZIXI) -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (4072)	4/12/2004 1:24:34 PM
From: Kevin Podsiadlik	Read Replies (1) \| Respond to of 4120

At least we finally know just what the heck Greenberg is thinking. And that he does have reservations (see the last sentence). cbs.marketwatch.com Zix (ZIXI: news, chart, profile). The Dallas-based company is best known for its e-mail encryption software. It's also known as one of Dallas Maverick owner Mark Cuban's largest short positions. (Gotta love Mark; at least he puts his money where his well-known mouth is.) Adding to the tension: It's also a popular short for some of my best sources. But in keeping with the contrarian nature of this column, I started mentioning it positively at around $9 because of the potential for its e-prescription business; it's now trading above $16. Zix is vying for a piece of the business with a dozen or so other companies, but it's believed to be well ahead of the pack. With e-prescribing, Zix or one of its competitors gives the docs Blackberries or other types of PDAs to electronically write prescriptions and then send them online to the pharmacies. The e-script companies get paid by transactions fees paid by multiple sources, including pharmacy benefit companies. Key for Zix: Execution. Don't be surprised if the stock is volatile until the transaction revenues start showing up in more than a token way, something that should start to happen (if it's ever going to) over the next six-plus months. (Sometimes I think if this company succeeds it will be in spite of itself.)