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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (23373)	11/26/1997 5:03:00 PM
From: McNabb Brothers	Read Replies (1) \| Respond to of 176387

craig, DDIM is a company that will not have a product or service in 2 years! We started shorting about a year ago and kept shorting it all the way to $40 plus! Our avg. in DDIM is right at $35! Still short but will look to get out fairly soon for some type of dead cat bounce! <What did you think of Soros and Fidelity investing in the company.> I understand that Soros has gotten out and Fidelity is not a concern to me as it once was! I may be wrong on Soros, but there is really no way to know for sure what he is doing so I do not pay alot of attention to rumors that fly around with his name on them! <Management was extremely bullish after the last Q results and estimates are $2.23 for '98. At 18 a share that is a PE of 8 on est.> Management of any company has to be bullish on their stock today or they will get killed by shorts! Look to see who is selling and you will get an idea as to why management is so bullish! As far as the $2.23 a share for 98, it would be a low PE, but if you factor a 100% gain the next two years in earnings and you get $4.50 then $9.00 for a total of $15.75 in cash and 40% of that will go to taxes! DDIM will have $9.45 per share in cash and some good used office equipment, with nothing left to fix until maybe the year 2100! I figure at best they are worth about $9! Sure they will do other things, but their pot of gold is the year 2000 fix! Another company in the year 2000 fix is ZITL, which is our favorite short and our biggest short and we starting shorting that before it took off to $70 plus and have stayed with it all the way to $70 and added to it as it went up! Our avg. in this stock is about $45! We are looking for $5 or less before we get out of all of our short position in that one! The CEO sold 40,000 shares of ZITL in the past few days and said he was doing it because he was exercising options to buy 100,000 share of ZITL at $4 1/2 and needed the money to be able to exercise the option on the 100,000 shares! On the surface that might make soom sense, but what kind of person would sell 40,000 shares of stock 1 month before the end of the year and have to pay taxes on that gain? If he is so bullish like he says he is I would think that he could defer the capital gains tax on that sell for a year! Sounds like he needs a good accountant to me! Get ready for more sells by ZITL CEO very very soon! Hank