still a dog, page-4

Getting closer to the moment of truth for ZYL. If it continues to slide then clearly it has been a pump & dump by management to withstand the QTK takeover attempt, if it is the real deal there will be another spike very soon.....

From my point of view i think we are about to find out a lot about the character of ZYL management. If the company is a serious contender then they will avoid a further capital raising until a higher value is reflected in the shareprice. Mark Pallister is now officially out of escrow, if he dumps then he clearly thinks ZYL is only worthy of the $2 million script in QTK that they offered, if he holds it may well be a sign that he thinks ZYL has further upside. Say what you like about MP but he is no fool.

The slide in the sp since the big spike up could be nerve racking for holders but I keep coming back to the big picture issues. 1) Teaming arrangements with true heavyweights of the tech sector, 2) A quality management team which includes Julian Dinsdale, chairman of CFU, 3) more sales in the past few months than appeared to have been achieved in the past several years...

I have been told by a fellow shareholder that attended the AGM that thus far into 2007 ZYL have achieved 82% of their sales targets for the entire calender 2007, which is what the Bucks report was based. Therefore if ZYL are on target to achieve close to a NPAT result of $2 million for 2007 they are on a current P/E of around 4. Furthermore that did not include the full rolling out of the current bank pilot which was announced in the first Diebold ann...

My gut instinct tells me that the upward spike is not over for ZYL, i rate it as certainly being comparible to stocks like QTK, BQT, QRS possibly even a DDT (although imho there are no question marks surrounding DDT - that is probably in a class of its own). Regardless if ZYL continue to deliver the upside from a market cap of $8 million has to be enormous.