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

To: Michael who wrote (17666)	1/19/1999 9:06:00 PM
From: Roger A. Babb	Respond to of 18263

Michael, don't count Zitel out yet. They still have the opportunity to change their name to .com and play again.

To: Michael who wrote (17666)	1/20/1999 10:00:00 AM
From: nonzeroa	Read Replies (1) \| Respond to of 18263

Michael, the company can also continue to stretch its suppliers to reduce its cash burn. The company took an average of 150 days to pay its suppliers in the most recent quarter versus 109 days last year. However, I'd guess most suppliers sell to ZITL on a net 90 basis and will cut ZITL off if it continues to slow pay its suppliers. Sure is a nice day.

To: Michael who wrote (17666)	1/21/1999 8:36:00 AM
From: Mark L.	Read Replies (2) \| Respond to of 18263

"Therefore Zit could last 60 days past March 12, before going Bankrupt" It is my recollection that shorts have been calling for the imminent bankruptcy of Zitel for over a year. They have backed up this assertion by citing the constantly deteriorating balance sheet. Yet, Zitel continues to exist. Doesn't anyone question the logic here? Companies go bankrupt not when their balance sheets deteriorate but when they run out of people who will lend. Zitel has been very profitable for buyers of the convertible preferred's. I see no reason why that should be any different in the future. There is still loads of liquidity in the stock. Yes, Zitel has to do another round of financing by April or May. But they've made money for their lenders before; why would anyone think that the lenders would not welcome them again? And again? And with another 10 million in the bank Zitel might make a sexy acquisition. I have as big a short position as anyone here, but I am constantly amazed at the conviction of the posters that Zitel is not long for this world. And everyone here thinks that Jack King is the deluded optimist?