POSITIVE PRESS??
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By: DABOSS $$$$
Reply To: 476890 by drhunt $$$$ Friday, 22 Sep 2000 at 6:59 PM EDT
Post # of 476926
drhunt: Did you see the positive press on EDIG today ?
Actually a perspective that focused on what the company is today, where it stands, and the potential that lies within, rather than the typical myopic viewpoint of a so-called journalist who does no more research than to look at the balance sheet of what was an R&D company, and do no due diligence as to the company's present business relationships or markets.
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By Gregory Thomas
Published by OTCNN.com
09/22/2000 02:18 PM EST
Stock market message boards like Raging Bull often feature opinions from investors that their favorite stock is the next Palm, Microsoft, Qualcomm, or Texas Instruments. But shareholders of e.Digital Corporation (OTCBB:EDIG) are putting their money where their mouth is.
With virtually no institutional investors, the digital media engineering company’s market capitalization now stands at $635 million. The ranks of e.Digital investors have grown from 35,000 shareholders to more than 100,000 in the past year.
On Tuesday, e.Digital invited its shareholder community to celebrate an early Thanksgiving at the company’s annual meeting November 9 in San Diego. CEO Alfred H. Falk announced that revenue for the current quarter will surpass $1 million, topping combined sales from the previous two fiscal years.
Still, annual sales would need to reach $20 million to justify a comparison to Palm, maker of the red hot Palm Pilot PDA. With a market cap well over half a billion dollars, e.Digital’s revenues would need to reach $30 million this year to compare to Microsoft, $50 million to match Qualcomm, and $60 million to equal the price-to-sales ratio posted by Texas Instruments.
Shaking off uncertainty surrounding the future of digital music on the Internet, e.Digital closed at $5.031 Thursday. It was the twelfth trading day in September the stock has closed above the $5.00 benchmark for listing on the NASDAQ national market.
A possible NASDAQ listing is a favorite topic for investors who have made e.Digital the most talked about stock on Raging Bull. The main EDIG message board recently gained a mention in a Dow Jones NewsWire report. With 5434 registered members, EDIG dwarfs the audience for runners-up AOL and Cisco Systems. Individual e.Digital shareholders are among the most popular writers on the Web site, with their registered readers also numbering in the thousands.
The question now is: Is this OTC company with 21 engineers really the next big thing? The jury is still out, but judging from 475,000 opinions posted on Raging Bull since February last year, there are more than a few that think so.
Attracting 100,000 individual investors to an OTC stock is no easy task. The e.Digital investor army may be led by technology investment buffs, but the growing ranks include cousins, in-laws, next door neighbors and co-workers who are backing the optimistic target price of $30 to $60 set by some individual message board analysts.
To believe that e.Digital will one day be worth $3.5 to $7 billion, it is necessary to believe that the company’s patented operating MicroOs operating system will be soon embedded in millions of music players, cell phones, car radios, digital books, Palm-type devices, and miniature video players.
Forecast sales for many of these new technologies are astronomical. Forrester Research predicts annual sales of 32 million music players by 2003. Cell phone sales last year topped 350 million units. Every single one of those cell phones will become obsolete as new phones come to market, equipped with technology like Intel's XScale processor and flash memory. Next-generation cell phones will access the Internet, download and play music, and display motion video on color screens. They will be capable of downloading and reading a newspaper story, out loud, and responding to spoken commands.
Investors point to the presence of three senior Intel veterans on e.Digital’s board as evidence of a future role for the company as Intel rolls out its flash memory and text-to-speech, speech-to-text initiatives.
"All the different offerings are starting to converge, and it’s becoming global," Robert Putnam, e.Digital executive vice president told OTCNN. "That doesn’t mean competition won’t come, but it’s going to be an enormous industry. We look forward to our share of the business."
"We firmly believe that this future will really take off once people are able to use products that they can speak to and navigate by voice, rather than pen-based systems, miniature keyboards, or several buttons. These products will explode," he continued.
Timing and events have yet to favor e.Digital’s music player business. More than 50 manufacturers now supply MP3 players to the U.S. market. Consumers are unlikely to abandon MP3 players until the conclusion of legal proceedings involving the recording industry, the free Napster music Web site, and MP3 itself.
e.Digital has announced three licensing deals so far for its music player technology. With full-scale production, investors expect steady revenues, a listing on the NASDAQ national market, institutional investment, and a higher share price.
As legal music content from the record labels begins to trickle into the market, so does demand for new music players. But the trickle is not going become a flood in time for Christmas, especially after July’s California court decision shutting down Napster was overturned, pending appeal.
As Universal, BMG, EMI, Time Warner, and Sony begin their initial Internet music offerings, consumers are logging onto Napster in much the same way that party-goers crowded Chicago saloons before the onset of prohibition. Media Metrix reported that traffic to Napster was up 400% in July with 4.9 million users.
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