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

To: BonniesGuy who wrote (12391)	10/31/1997 12:14:00 PM
From: Russian Bear	Respond to of 18263

Hey, Lookout! Zitel is staging an impressive rally! Back up over 14... Say, is it you guys, Bonnies and Angel, who are bidding it up so high? Smarter than the average bear, are you? Russian (not even thinking about covering) Bear

To: BonniesGuy who wrote (12391)	10/31/1997 12:14:00 PM
From: CMason	Respond to of 18263

Given the cash burn rate, declining sales, and dimming prospects for Y2K work, what makes you think they won't get a "going concern" warning? The Caymans deal clearly showed they have no recourse to conventional sources of funds, and I'm not sure even an offshore fund would want to touch them in their current state. Please try to answer factually and omit the "nega hype" name calling. CMason

To: BonniesGuy who wrote (12391)	10/31/1997 12:16:00 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 18263

BonniesGuy, RE: going concern. Since you ask, a "going concern" warning is typically issued when the accounting firm believes that there exists a high probability that the Company will not survive until the next audit (i.e. 1 year). Zitel has $13.8M in cash (and short term investments) and their burn rate is $5.2M per quarter. At this rate they will run out of cash in May '98. Stop here. Any Nega-Hype yet? I will continue the lesson, if you agree this first paragraph is factual. Bill

To: BonniesGuy who wrote (12391)	10/31/1997 12:19:00 PM
From: Brad Patton	Read Replies (1) \| Respond to of 18263

BG, I too hope for a contract annoucement. As a short since 23 who plans on covering in the next couple of days, I pray for some new spike in price. So I can do this all over again. Did you listen to the CC? Is this really a management team you feel comfortable with. Regarding the discussion on this thread of Zitel going to zero. I think any company so motivated can stay in business longer than one would expect. Through private placments and expense cutting.