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

To: Biomaven who wrote (13131)	11/28/1997 8:26:00 PM
From: Marconi	Respond to of 18263

Peter: (It is not correct that the tax liability is due only at the end of the quarter. ) Thank you for adding this important detail I had neglected. It is possible to change the withholding more favorably to the holder to keep the money working for the holder and delay the transfer to the feds as late as possible: one needs to watch out for penalties. I agree Mr. King's holding this stock appears bullish. However he made his big money earlier this year if I recall correctly, and in light of that this trade could very well be window dressing in support of the stock with expiring options. I do not have enough time or detail to pin this down. However Mr. King is notable for the upbeat messages in face of astonishingly poor performance. And it has been his practice to imply the future is magnificent, but without the substance to show why. Highest regards, MDR

To: Biomaven who wrote (13131)	11/29/1997 2:57:00 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 18263

Peter, The press release "a little deceptive"? Maybe just a little - but if the Company had disclosed the exact details of the transaction, would the sell-off in Zitel's stock continued? IMO, yes. The question is: Did Mr. King receive any material proceeds from the transaction after estimated taxes and transaction costs? The answer appears to be YES! Even if Mr. King claims his marginal rate is 45%, he still received over $100K in after tax compensation. Since his salary is $240K per year (1996), this compensation is material and should have been disclosed. If Mr. King received any material compensation, the sentence in the press release that starts, "The net result of the transaction ..." is not just deceptive, but FALSE. I'm not sure how long you have followed Zitel, but their management has established a pattern of deception. As an example, in July, Mr. King claimed to have a contract on his desk - and he went so far as to imply that the deal would be done if a lawyer had not taken a long weekend! Although Mr. King's statements in July may have been factual, the implication was completely FALSE and misleading. A final thought. Did I overreact to the Zitel apologists? Yes. But if you have followed the posts of these individuals, you know the reason for my immediate and angry denouncements! Regards, Bill