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

To: Stanley L Brown who wrote (13899)	1/28/1998 6:50:00 PM
From: Bill Wexler	Read Replies (3) \| Respond to of 18263

Darn. Put in another limit order to short at 12 - and missed again. Could someone please float another George Soros or Colin Powell rumor?

To: Stanley L Brown who wrote (13899)	1/29/1998 8:37:00 AM
From: Deep Digm	Read Replies (1) \| Respond to of 18263

Well then let me give you some info you should have Stan. The contract details obviously weren't announced but a source tells me the BRCP contract with WF was for about 80M LOC at a little under a dollar per/LOC totaling approx. $75M. You back out BRCP's 7% and you're left with a little under $70M which all goes to MD for the conversion. From there somebody will have to ferret through the contract details to see how Zitel's percentage gets back to them. But whether it's off the top or after expenses, Zitel is going to net more money from this than it's projected needs for the next 6 months. Why? Some time ago I posted the performance criteria figures from the BRCP/MD contract which a lot of folks thought were hysterical at the time. We now see according to MD's newly updated white papers that they've attained those 99%plus figures. Well if you remember back there were production costs per LOC that I posted along with the accuracy percentages. They showed production costs of less than 2cents per LOC ! ! If they hit the accuracy figures on the money how far off could they be on production costs? A nickel a line? 10cents a line? Still leaves an AWFUL lot of money left over. I agree that the point here is to make money. So as one of my short friends I'd respectfully suggest keeping a close eye on this situation because it's just the beginning. Stan I've mentioned before I'm a salesman, and I know from experience the toughest thing to do with a new product is "break the ice", get that first sale. Well they just did it. This is the first real contract for MD's technology, no discounts, no favors, no tests. Wells Fargo paid the full enchilada. When the 4th largest banking organization in the nation buys your product, heads are going to turn, and you have arrived ! More importantly, others will follow. Like Ahab said; "keep a sharp lookout lads, tis the white whale we seek!" :)) You have a great one Stan, Take care, Deep Digm