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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology
EDIG 0.00010000.0%Mar 20 5:00 PM EST

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To: Walter Morton who wrote (7426)8/24/1999 2:10:00 PM
From: Kerry Sakolsky   of 18366
 
Walter,

Many companies are valued on negative earnings. Your revenue projections don't take into account deals that we may not be aware of. The price may also reflect a large contract signed after the quarterly period.

In November you had me convinced to vote against the increase in authorized shares. Your argument that 100% dilution would cut the share price in half made sense, so I understood why you had invested a small amount at .06 looking to buy the rest at .03. After reviewing the salaries and options of EDIG's management, I decided to vote for the increase and held my position.

Sometimes common sense wins out over scrutiny. You'll have to decide now whether or not this downtrend is a buying opportunity. If it's not then you owe it to yourself to sell your shares. There is no reason for you to ride this thing down to .15. I'm guessing that's your price projection. In any case, if you sold now you'd enjoy a substantial return on your small investment.

Good luck,
Kerry
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