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

To: sheldon spivak who wrote (17560)	12/24/1998 9:08:00 AM
From: A. K. Giddings	Respond to of 18263

biz.yahoo.com Wednesday December 23, 6:24 pm Eastern Time Zitel CFO says he knows of no reason for stock activity PALO ALTO, Calif., Dec 23 (Reuters) - Zitel Corp. (Nasdaq:ZITL - news) Chief Financial Officer Larry Schlenoff said on Wednesday he knew of no reason for the sharp rise in his company's stock or for increased trading in Zitel's options. Shares of the Year 2000 information services company rallied $1.82 to $6.45 Wednesday on the Nasdaq in heavy volume. ''No one I've spoken to has given me any insight'' on the stock's move,'' Schlenoff said. ''There's really nothing on our side." Implied volatility, a key factor in determining options prices, jumped as high as 115 percent for the January 7-1/2 options in late trading from around 98 percent earlier this week. Call volume outpaced put volume by about seven to one. Traders were at a loss to explain the sudden burst in activity in the options and stock. Paul Foster, investment strategist and editor of 1010WallStreet.com, said the company was drawing attention because of its focus on Year 2000 computer issues. ''There are still Y2K problems out there,'' he said. ''And there are only 373 days left to work them out.'' On Monday, Fremont, Calif.-based Zitel said it called off its plan to up its stake in privately held MatriDigm Corp. to 55 percent and take MatriDigm's name as its own. Instead, it said it would boost its stake in San Jose, Calif.-based MatriDigm to 58 percent by converting $3.2 million of notes receivable, plus accrued interest, into MatriDigm stock. ''There's still some strong potential in the Year 2000 market,'' Schlenoff said.