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

To: Marconi who wrote (13460)	12/22/1997 11:42:00 AM
From: Stanley L Brown	Respond to of 18263

Marconi, WOW! Now wouldnt that throw a sticky wicket in the groin area??? Im not sure if the scenario you paint could be accomplished today, but it is worth thought! As we think the beat goes on in the ole ZIT! Or is it, goes on down! :) Happy Trading Stan

To: Marconi who wrote (13460)	12/22/1997 2:10:00 PM
From: scname	Respond to of 18263

Zitl has too many shareholder lawsuits coming,nobody's going to buy it.

To: Marconi who wrote (13460)	12/22/1997 4:07:00 PM
From: NYBellBoy	Read Replies (2) \| Respond to of 18263

Marconi - I was expecting the term "Going Concern" to show up. Instead they consistently used the term "there can be no assurance that satisfactory levels of net sales will be achieved in the future". About MatriDigm, There is no assurance that it can successfully market its automated toolset, develop extensions for other computer languages or generate substantial revenue and profits...... MatriDigm has been unable or unwilling to provide public information on a regular basis about the status of its development and marketing efforts, and as a result an opportunity is presented for third parties to initiate rumors which result in significant swings in the price of the Company's Common Stock. IMHO, the clause " Due to the uncertainty surrounding the realization of the NOL and credit carryforwards in future returns, a valuation allowance has been established to reduce the deferred tax assets to the amount expected to be realized. Dear Shorts and Longs, this is as bad as it get without actually using the term "going concern". They wouldn't let them use the total Tax Loss Carryforwards because they don't have reasonable assurance that these Credits will be realized. :) BellBoy

To: Marconi who wrote (13460)	12/22/1997 7:22:00 PM
From: Brad Davies	Read Replies (2) \| Respond to of 18263

Marconi, the tax losses may be worth 20-25 cents on the dollar to certain buyers, but I think it would be a hard sell in the case of Zitl, since the buyer would have to merge the two corporations and take on the legal liabilities that come with it. I don't think any responsible company would put a viable business at risk by doing that. On a different note, it seems to me that with their current burn rate, that Zitl should be out of money in about 2 months. (I calculate a burn rate of about 5m per quarter, and they had liquid assets of abut 9m as of Sept 30). Their life span may be even shorter if they continue to lose royalty revenue at the same pace. Has anyone else done the analysis? Ron