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

To: CalculatedRisk who wrote (13786)	1/21/1998 2:18:00 PM
From: Deep Digm	Read Replies (1) \| Respond to of 18263

I enjoy the banter too,it's the black&blue marks I can do without:)) Seriously, you'll get no argument from me that based on valuation the short position is the logical one. But logic a.k.a. reality, is the "last" phase of any situation IMO. Between now and then there's a great possibility that; a. This group of talented and successful people will in fact come up with a product that's "at least" as good as anything out there. b. Since it's obvious their primary focus is Federal/State business, their relationships with the top Federal IT vendors should produce business, either for them or MD directly. c. IMO, contracts for $100M will be the lower end of the scale with the Federal government and all it would take is 1, just 1, from Northrup, OAO, FDC, or the Registry with MD as the acknowledged sub contractor to them, and IMO this stock will take off like it's shot out of a cannon. Will it last, hell no. Eventually it will come back to reality and price would come in line with value. But before that happens there'd be a helluva lot of money to be made. Frankly that's what I'm looking for. I've said it before that I think this is a talented, successful group of people for the most part. That's no guarantee they'll succeed, but as Murphy said, "the battle is not always to the strong nor the race to the swift, but that's the way to bet". Logic, at this point, won't have anything to do with it. You have a good one, Deep Digm

To: CalculatedRisk who wrote (13786)	1/21/1998 6:40:00 PM
From: CalculatedRisk	Respond to of 18263

Capitalization of MatriDigm; Investments by BRCP & Zitel The following is pieced together from various SEC filings and news releases by Zitel & BRCP. MatriDigm Capitalization Common Stock 100M shares Authorized, 18.15M shares issued. Zitel owns 300K shares of Common. BRCP owns 1.5M shares of Common. An additional 6.4M shares of options have been granted (not included in 18.150M number) Preferred Stock (30M shares authorized, 13.6M issued) NOTE: It appears that one share of preferred is convertible into one share of common. The preferred does NOT pay dividends, but does receive preference in liquidation. Series A: 9.6M shares authorized and issued. Series B: 2.0M shares authorized and issued. Series C: 1.5M shares authorized, reserved for outstanding warrants. Series D: 5.0M shares authorized, 1M shares issued. Series E: 0.67M shares authorized, none issued. Series F: 0.5M shares authorized, none issued. Zitel owns 9.6M Preferred Series A. Zitel owns 1M shares of Preferred Series D. BRCP owns 1M shares of Preferred Series D. Debt $12M dollar in debt. Investments by Zitel into MatriDigm 11/95 $3.35M Cash for 9.6M shares preferred Series A. ($0.35 per share) Zitel also invested $150K in rent and $66K in equipment. 12/96 $1.0M Cash for 0.5M shares preferred Series D. ($2.00 per share) 2/97 $1.0M Cash for 0.5M shares preferred Series D. ($2.00 per share) 9/97 $0.3M Cash option exercise for 0.5M shares Common ($0.60 per share) Total Investments by Zitel $5.879Million. Investments by BRCP into MatriDigm 10/96 $1.5M Cash for 2.0M share of Common ($0.75 per share) 12/96 $1.0M Cash for 0.5M shares preferred Series D. ($2.00 per share) 2/97 $1.0M Cash for 0.5M shares preferred Series D. ($2.00 per share) Total Investment by BRCP $3.5Million. Ownership Calculation: Of Issued: Zitel 10.9M shares of 31.75M total issued = 34% BRCP 3.0M shares of 31.75M total issued = 9% Note: Zitel claims to own about 33% - this probably indicates a few options were exercised. Fully Diluted (options & warrants) Zitel 10.9M shares of 39.65M = 28% BRCP 3.0M shares of 39.65M = 7% Verify - as always! Regards, Bill