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

To: Mark L. who wrote (17241)	10/6/1998 2:10:00 PM
From: Bob Trocchi	Read Replies (3) \| Respond to of 18263

Mark... >>Could you please take a moment and post what the virtues of this transaction are for Zitel? << I know that your question was addressed to Stanley but I will take a small crack at it. Just my opinion. MAT. had 9 mo. revenues of 3.8M and expenses of 10.8M Given that they are private the complete balance sheet and P/L are not available. Could it be that ZITL had no choice. I surely do not know how how much cash MAT. had left. If they were going down the tubes, then Zitel would have lost a major prop and their 30% investment in them. Thus buying them ( I guess it is called a merger) makes a whole lot of sense to Zitel. They are not really paying any cash just giving MAT stockholders shares of the new company stock. This has to be dilutive to The new company and current ZITL stockholders. Also combined, two companies will have to produce a whale of a lot of revenue to cover the combined losses. Need more data to access what "whale of a lot means" but it surely is significantly more than what they have been producing. I know I am looking at this from the "dark" side and that of course biases my judgement. Appreciate any and all comments. This has to be the stock with 1001 stories and more lives than a whole litter of cats. Bob T.