walter aka irrelevant - something for you ------------- Steve Harmon, e-harmon.com CEO
As one of the most widely-read Internet analysts on the Web, Steve Harmon looks at the sector with a different twist than other analysts. In today's Q&A, Steve digs into his e-mail bag to take your questions on Adobe Systems, MP3 digital audio, online mortgage/loan companies, Flash technology and more Check out this Money Talk exclusive!
Money Talk: What do you think about the prospects for e.Digital Corp., which is working with Lucent Technologies on an alternate standard to MP3?
Harmon: MP3 is popular because it's free and the file size is whittled down through cutting off the treble of the audio spectrum. That makes downloading MP3 files easier than trying to suck the elephantine WAV or RealAudio files through a dial up modem (anything under 56.6 kbps).
e.Digital {EDIG} has a market cap at $158 million and posted $426,000 in revenue in its latest fiscal year and now looks extremely overvalued to me, Lucent {LU} deal or not. Working on an alternative to MP3 sounds great, but meanwhile back at the Internet, MP3 has several million fans. Not to mention MP3.com {MPPP}, the flagship for the movement, has a considerable cash horde, more than Lucent or EDIG have put on the table, to make digital audio better.
e.Digital shareholder's best chartbuster would be for Lucent to sponsor its tour. Otherwise it's just another garage band with three chords and an unsung melody. |
