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

To: John Kratus who wrote (12512)	11/2/1997 7:51:00 AM
From: Bill Wexler	Read Replies (2) \| Respond to of 18263

<<is it pronounced ZI-tel or zi-TEL>> I believe it's pronounced F-R-A-U-D.

To: John Kratus who wrote (12512)	11/2/1997 9:39:00 AM
From: Zebra 365	Respond to of 18263

I agree that MD stock could be sold to survive; below is a post I made a while back. Subject: Show ZITL the MD money Date: Sat, Sep 20, 1997 11:15 EDT From: Zebra 365 Message-id: <19970920151501.LAA22266@ladder01.news.aol.com> I'm short this stock, so those of you who only want to hear positive things may move on to the next post. I can sum up my point briefly, there is no "ZITL/MD". That is to say that these two businesses are separate and should be looked at as such. The long holders of the stock ZITL are comforted by the contracts and announcements of MatriDigm, and if the title of "ZITL/MD" is used by the shorts as well as the longs, the assumption remains that the revenues of MD will help ZITL. If a short says ZITL has no Y2K contracts or revenue (and they don't) then the longs reply with the MD announcements. The long post by MF Chiros for example, where ZITL was never even mentioned, focused exclusively on MatriDigm. Other than the dividend on the MD preferred stock that ZITL owns, MD owes ZITL nothing. And the extent of that dividend has not been disclosed. ZITL may have three board seats on the MD board but the other board members are not going to allow decisions that benefit ZITL at a cost to MD (and the other board members). The more money that is at stake the more clear this will be. I can verify this from my own experience with boardroom politics and decisions. When the long holders of ZITL realize this, they will be less comforted by the phrase "ZITL/MD". Any major company or govt agency with code to convert is going to want to deal with a VAR or IS company that they have a relationship with already. They also want someone who will have something to lose if the Y2K fix blows up. ZITL or MD will not walk in off the street and get that contract. I believe that AnswerThink is a consultant group put together to hook up the Y2K companies who have the tools with the VARS /IS companies who have the big clients. In this case, MD with Northrop. If the market understood that this Northrop announcement indicates that MD is seeking other deals with established VARS and is not going to use ZITL as an exclusive VAR, then ZITL stock would have dropped on this news. Just look at the two companies' web sites, ZITL goes on at length about their relationship with MatriDigm. The MatriDigm site barely mentions ZITL. MatriDigm Corporation site link: matridigmusa.com So my take is that MD may move forward and be a real Y2K player, but it will leave ZITL behind. ZITL stock price will tag along until the market figures out that the value is in the MD dog and not the ZITL tail. If you agree with this view, then the real job is to get the longs to understand that they do not have a direct stake in MatriDigm. If MatriDigm is profitable and evolves into something more than a Y2K company without "liquidating the company", then ZITL will only receive dividends from its stake in MD. Those who understand finance already realize that "preferred stock" is not much better than a bond in terms of an equity stake in the company. Of course ZITL has the exclusive rights to the "portable factory." So what other VAR will sell the "portable factory" for ZITL? Are there truly situations where the "portable factory" will be the only solution? Good questions for all of us, short and long, to research as this may be the only source of revenue that ZITL can expect from its relationship with MatriDigm. Zebra