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

To: Steven M. Kaplan who wrote (16756)	7/22/1998 9:59:00 AM
From: Bob Trocchi	Read Replies (1) \| Respond to of 18263

Steven... >>. Go to the very bottom of the list where they show cost per LOC- Zitel is $1.50<< First, congrats to Zitl for the NY State Contract. For the longs I hope it goes better than the long ago Nevada contract! Secondly, thanks for the link. You mentioned the end of the page shows ZITL's LOC costs. At the top of the page it states that these prices are a NOT TO EXCEED price. We thus do not really know what LOC revenue ZITL will receive. Based on my many years of experience in dealing with State Gov., low bids win in the majority of cases. By getting onto a general NY State contract, they had to pass some qualifying criteria thus giving various agencies the ability to pick the vendor they feel the best about AND they can defend from a pricing standpoint to the public. I am NOT saying that ZITL was the low bidder but I suspect that the $1.50 "NOT TO EXCEED" price was quoted somewhat lower for this bid. In any event, I give credit where credit is due, they won a contract and if they get a dozen or more, then their $4-5M losses per Q can eventually get to break even. Regards and good investing, Bob T.