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

To: Russian Bear who wrote (16552)	7/14/1998 6:02:00 PM
From: g forrest	Read Replies (1) \| Respond to of 18263

Someone please convince me not to cover. I'm actually loosing money on this one. I left the office for a few hours and I come back to this! I hope we don't go to ten tomorrow.

To: Russian Bear who wrote (16552)	7/14/1998 8:03:00 PM
From: White Shoes	Respond to of 18263

ZITL: ROMANCE, AND REALITY People love a good resurrection story as much as they love a good armegeddon story. ZITL is in the fortunate position of playing on both emotional themes. At present many are hopeful that this no-hoper can rise from the ashes, that it will blossom into a real company which might justify its present market capitalization or more ($160 million +). Sadly for them, there is not a lot you can do to redeem a company which has dealt itself out of the Y2K business and is simply winding up its operations gracelessly. The company now loses more money per quarter than its revenues. It has done two funny financings which are inevitably followed by 'death spirals'. Its stake in Matridigm is thin and it is not quite so simple to say that revenues or earnings at MD translate into earnings for the "Zit". Zit players don't understand that the Zit as an investment vehicle doesn't cut it. As others have so eloquently stated, the Zit has going concern issues and probably soon will have legal issues. The hard cold reality of this will once again return when the quarterly loss report tells the tale, and those who threw a dart at this Y2K armegeddon-resurrection narrative this week will discover that they own something which has zero chance of success and arguably really isn't in the Y2K business anymore (or any other business for that matter). A few traders made out OK this week, hats off to them. To those who bought in thinking this company has any chance of "the fastest rampup in corporate history", or even of coming anywhere close to breaking even, ever, then you will need more luck than I can wish you. CHECK THE FUNDAMENTALS FOLKS! This company is not worth $20 million let alone $160 million! I went short above $7 today and will short above $8 if possible tomorrow. Thanks to the last financing, there are two or three chapters left in this riveting narrative. The last one is Chapter 11!