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

To: Arthur Radley who wrote (13747)	1/18/1998 10:58:00 AM
From: Deep Digm	Read Replies (1) \| Respond to of 18263

Texas, AAAhhhh, The Sleeve ! ! ! I forgot the Sleeve :))) Texas, I've lost my underwear with this baby. Have no intentions of losing the shirt OR pants. I just want to see what attracted them, why they hitched their reputations to this star. Zitel/BRCP have invested a total of $10MIL. Somebody coughed up the $14MIL or so MD spent last year. Esping's on sabbatical from BRCP with their blessing to orchestrate MD's growth, Chait left SRI as division head with 600 people underneath him. I can't believe it was for nothing. Besides, with the short position that exists on this stock a short squeeze, even a short lived one is a very real possibility. If one ever gets started it'll be my opportunity to make back some of what I've lost, maybe all, maybe even a profit. You shouldn't begrudge me that, it would be another shorting opportunity for you guys:)) Finally Zitel won't be in a bidding war for govt. business, Northrup, OAO, FDC, those guys will. Question is if Zitel/MD will get any of the business they get. Northrup obviously feels comfortable using MD. Yes Zitel's financial condition would be a real concern to me. As a salesman I don't sell my product by knocking someone else's, I sell the benefits of mine and the advantages of doing business with me. If I were competing against Zitel I would certainly emphasize financial strength as a benefit of doing business with me. But let's not forget there is a product there, we haven't seen it but there is one there. IMO even if it's 20 points away from the figures in the BRCP contract, it would be a helluva product. Question then is there ANY kind of a deal that would satisfy a potential customer about doing business with a company in Zitel's financial positon? I don't know. With the production costs down around $.02 cents/line, I'd personally suggest anywhere between 10% & 25% up front, balance on completion of testing with some kind of time limitation. A deal can always be made, the question is if you can live with the terms:)) Anyway that's enough for me for a Sunday. Enjoy your day, best of luck. Deep Digm Anyway we'll see. Meanwhile watch aces up the sleeve. I've spent time in Texas, they don't take kindly to that stuff. Wouldn't want to lose you at this stage of the game :))

To: Arthur Radley who wrote (13747)	1/18/1998 11:56:00 AM
From: John Kratus	Respond to of 18263

MEMO To: Jack King, CEO, Zitel Corp. From: John Kratus, investor Re: conference call Hey, Jack! I know that you read this board or have one of your employees read it. So I'm sending you this memo to give you some advice on how to handle this quarter's conference call. On the morning of the last conference call I gave you the following suggestions: (1) own up to previous failures of the y2k division and clarify your own misstatements about Zitel's y2k prospects, (2) emphasize the promise of the storage division, and (3) proivide a vision of a post-2000 future for Zitel. In the call, you following the first two rather well (the "Jack Said" segment sounded nicely rehearsed), but you forgot to cover #3. This time you have another big deficit to report and another PR problem in regards to Zitel's credibility. Here's the plan: (1) announce that Zitel is keeping its MD preferred stock as a passive investment, (2) announce that Zitel will itself get out of the y2k business but that you are selling (or have sold) the exclusive rights to the MD mobile code factory to another VAR, and (3) explain how you will use the money from #2 to build Zitel's long-term value. That's it, Jack. Please follow the script closely, as you may not have another chance next quarter. Oh, and Jack, cancel the VCAL web-o-rama. You don't want too many of those S.I. types listening in and making fun of you in real time.