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

To: Trio who wrote (17773)	2/26/1999 8:51:00 PM
From: CatLady	Respond to of 18263

My data feed shows short interest as 20% of float right now, so I'm sure many shorts have covered. I know I did. My broker requires a larger % for margin once a stock is below $5. I'm impatient and think I've got better use for the capital elsewhere. I'm just an observer right now.

To: Trio who wrote (17773)	3/2/1999 1:38:00 AM
From: Mark L.	Read Replies (2) \| Respond to of 18263

At <$3 now may be a good time to pick up some shares. With the stock now well below $5 why would shorts not be covering? As incredible as it may seem to you at this price, many people think that Zitel is still one of the most overpriced, safest shorts out there. To take a somewhat silly example, maybe you've heard of a site called Vectorvest, an attempt to value stocks impartially based on both fundamentals and technicals. Out of the 6,000 stocks they follow, they rank Zitel absolutely dead last (there is actually one other company which ranks lower, but it's defunct). This is not meant as an endorsement of Vectorvest (believe me!), but it is meant to show that there are neutral parties out there, with no axe to grind either way, who look at Zitel as stunningly overvalued--at $2.75. This is not to say that it won't have another or a few more runs. It's even conceivable that the company might pick up some Y2K money. However, absent a dramatic turnaround at the Datametrics division or an amazingly lucky acquisition, the picture will look increasingly grim over time. It would seem to me that you could find a better risk/reward ratio somewhere else. But, hey, I admit to being prejudiced: my short position is within a few thousand shares of being at its highest level during the whole Zitel saga.