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


To: CalculatedRisk who wrote (13808)1/23/1998 8:56:00 PM
From: Gary S.  Respond to of 18263
 
Hi Bill (CalculatedRisk),

<<Speculation: Why hold a conference (and release results) at 5:30AM PST on a Monday? Two possible and disparate reasons:
1) They are going to announce a major contract ("on my desk" or "next week" will not make it) ... OR 2) they will announce
major cost cutting (i.e. layoffs).>>

I am sure the 2nd scenario is more likely than the first one. I don't see the need to call a press conference for announcing a contract.
It may be a combination of both but the 2nd is there.

If there is any action in that direction I see it happening more in the hardware division and anycase I think it is going to be for the good of the company.I think Zitel is making a transition from being a hardware company to more likely be a software and service one. The intellectual value of products and Y2k is where they think money is.
Cost cutting was discusssed in the last conference call and I think is a step in the right direction for the company. It is going to add profitability in the future. I will take that as positive for Zitel.
I see contracts following this in this quarter and more in the next one.

good luck.



To: CalculatedRisk who wrote (13808)1/24/1998 3:11:00 PM
From: Deep Digm  Read Replies (1) | Respond to of 18263
 
Hi Bill,
You asked;
"Why hold a conference (and release results) at 5:30AM PST on a Monday?"

In my opinion, because this time they've got some good news to give us.

Think about it, we know the numbers are going to be bad, that's a given. What matters is if this company has a future vis a vis MD's MAP 2000. I wouldn't release figures prior to the call, I'd release them at the same time so I could say, yes, the numbers are bad "BUT, here's the good news....".

Having said that, I would choose the time for the conference call based on whether I wanted to "maximize" the effect on the stock's price or "minimize" it, and that decision depends on whether it's good news or bad news.

BAD NEWS; I'd minimize it by releasing it later in the day or after the bell, hopefully it won't look so bad in the morning. In fact I'd pick a Friday for that same reason.

GOOD NEWS; maximize it by releasing it before the open AND on a Monday so the stock has a full week to be affected by the emotional reaction good news should produce.
I mean when do coaches give pep talks, before the game or after? :)))

So there it is. I think these people are finally sitting on something good and they want to give us plenty of time to react. Maybe those June '20's are gonna pay off after all :))

You asked for it, you got it- Toyota :))
We'll see soon enough

BTW, I apologozie for not anwering the other posts individually, I'm bushed, late night. I think this covers most everything.