e.Digital Corporation(EDIG) - Embedded Digital Technology Message Board

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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology

EDIG 0.0001000

0.0%

Mar 20 5:00 PM EST

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To: Kerry Sakolsky who wrote (6383)	7/7/1999 7:04:00 PM
From: JimC1997	Read Replies (1) of 18366

Another message poster asked me to speculate on the "ceiling" for the stock and I posted this: It really is impossible to predict an upper range for this stock. (I only used the "ceiling" term to correspond to my "floor" metaphor.) We have all seen internet stocks that attain incredible market capitalizations based upon long-term growth potential. e.Digital still has a very small market capitalization (about $225 million based on today's closing price) especially when measured against the sales opportunities which may be open to it. When you are dealing in multi-billion dollar markets even a small share can generate huge sales revenue and correspondingly huge market caps. To me the unanswered question about e.Digital is what direction the company will take in its business plan. If it focuses primarily on licensing its MicroOS for applications by others the resultant revenue stream will be safe for quite a while, but may take a long time to build sizeable sales revenues. It would take a lot of embedded MicroOS licensing fees at $5 to $15 per item to generate substantial (i.e. $100 million or so) revenue. Contract manufacturing and engineering (e.g., Lanier) produces the revenue numbers that causes analysts to pay attention, but is more subject to competitive pressures. I suspect that e.Digital will pursue both avenues with vigor and let their success (or lack of it) in one direction or the other guide their future plans. Once contracts are announced it will be much easier to begin creating reasonable projections. I don't think we have long to wait for those. Jim (I posted these last two messages only to generate comment from others on this board. The Raging Bull message board is so heavily trafficed that it is hard to even read most of the posts, let alone discuss any ideas that might be present.)

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