Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Marconi who wrote (17670)	1/20/1999 2:05:00 PM
From: Bob Trocchi	Read Replies (1) \| Respond to of 18263

Marconi... >>Both accounts payable and receivable are dilating. << I agree that the significant increases in AP and AR are not healthy for any business. My reasoning for the increases are as follows: AP: This to me seems obvious. They are simply extending their payments because they are short of cash. A common tactic in cash strapped companies. AR: My guess here is that ZITL probably shipped most of the DATAMETRICS SW at the end of the Q, thereby raising the AR a significant amount. There can be many reasons for this and it could be legitimate, i.e. customers buying at the end of the Q. If however there was a large jump in end of Q shipments it is also very conceivably came at a price. Heavy discounting to shore up revenue so a 30% revenue increase can be reported. This is "borrowing" from the future. I suspect this is the reason for the jump in AR. ZITL continues to be a very frustrating stock for both longs and shorts. It also has been very rewarding (long and short) for those people who have bought and sold at dips and spikes. I am both frustrated as I keep a short position waiting for the final fall. I have also been rewarded with a few selective shorts and covers. The saga continues. BTW, for a new twist on the Y2K and for a laugh, > News Release January 19, 1999 Redmond, Washington Bill Gates, Chairman and CEO of Microsoft Corporation, announced today that the latest version of their Windows operating system, Windows 2000, would be delayed until the second quarter of 1900. No reason was given."< Bob T.