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

To: Marconi who wrote (14622)	3/16/1998 12:41:00 PM
From: gaohong xie gary Xie	Read Replies (1) \| Respond to of 18263

Thanks for the analysis, MDR. I posted on yahoo and got many attacks. So last I posted following, no ZITL longs seems to care to answer, I wonder ZITL longs here could answer: It seems many ZITL longs here are working on fixing mainframe legacy code's Y2K compliance. I have no experience here, but specially like to know the approach they used here. If one happens work on FORTRAN's y2k compliance, please explain the approach in Fortran. This is for application only. Now for ZITL, I plan to short it. My arguments are: 1. If they still do not have the government contract, then they will not get it in the future. 2. Any y2k clients knows, there is no secret weapon to deal y2k. 3. If ZITL claims to have such secret weapon to auto fix y2k compliance in database, then every y2k service provide can have it. How hard can it be ? if you know the format. 4. ZITL has history of misleading investors. 5. My friends at San Jose consider ZITL is very bad company. 6. Personally, I found many so called ZITL longs on this thread is just in for a quick false hope squeeze. 7. There is no analysis following ZITL 8. I believe significant y2k contracts will go to other players like IMRS, VIAS, KEA ... and real believer of y2k are investing there. No rubbish please, it is not something you and me can move ZITL unless you have 100K shares. The purpose is to find out why there is difference between longs and shorts. I also bet most of readers here are short term players, that's fine. We all in for the bucks, so bear each other.

To: Marconi who wrote (14622)	3/16/1998 2:51:00 PM
From: J.S.	Respond to of 18263

The options activity is consistent with this scenario. What makes Zitl stock a good candidate for this? Answer: The convertible bond holders already have a built in advantage. They can short the stock and drive the price down with no risk by using the convertibles. They can then convert on the open market, preserving their debentures and proceed as you suggested. Without this advantage, such a play is much more risky - a desperate act when there is no underlying reason for the run-up. Either way this spells the beginning of the end. Joe