Your reasoning is so transparent it is embarrassing.
I don't see why you should be embarrassed by my reasoning. I
certainly am not. ;)
1.)EDIG is not making any money yet so you take that to mean they
never will make any money, is that correct?
You are asking a question that is impossible to answer. There is
possibility that they either will or will not make money. As i see it
we can base our guess on two things. Future possibility, which
you concentrate on... and historical facts which you seem to ignore.
FACT: EDIG has been unprofitable since 1992.
FACT: Woody's companies in the past have followed a pattern.
FACT: Ernst & Young last June says: "substantial doubt" in regards to
EDIG's future.
The real fact is simple. Historical data is NOT in favour of
e.Digital. And frankly, we all invest based on future possibility,
but it is in the end simply vapor.
2.)Please cite your "research" stating that it wouldn't be difficult
to design an OS at least as robust as or better than MicroOS. Please
name me one company that has developed or will be developing a
multi-codec music player that handles all DRM's and all codecs
seamlessly without transcoding and that will play each codec
"natively". Just one will do. If you could name another company that
has developed a flash file management system as good as or better than
the MicroOS I would appreciate that also. Just one.
I am close friends with several programmers. One is a programer for
TI here in Dallas who works on both audio compression codecs (dsp)
and flash memory oriented hardware. Mainly the R&D he does centers
around cell phones, but he is perfectly qualified technically to
comment on the music end of flash memory use. He has explained to me
why it would be easy to write routines that do what MicroOS does. He
explained to me that several of these sorts of routines exist in the
flash world already.
For example: Consider cell phones. You can store (edit, delete,
copy, beam to other devices, etc) your phone numbers in flash memory.
Too easy you say? Not big files like audio?? OK
Consider digital cameras. These devices perform all normal useful
file handling on image files as large as several megs each! Just like
an MPG. On flash memory!
Alright... you bring up codecs. They just aren't hard to write.
Players are out now that support multiple codecs. More players will
appear over time that support even more. I imagine there will be
devices soon that allow you to load a codec as it is developed and
improved. Decoding digital audio is EASY. It's the encoding that is
tough.
As an example, consider Winamp. It is software yes, but it offers
a good example of how easily different codecs can be developed
for modular software. And it would be nearly as easy to do this in
the software on the right sort of handheld device.
I am not arguing that EDIG doesn't have a head start in this area.
I am simply stating that *I believe* that another company could
catch up rather easily.
4.) The number of shares in the float hasn't been a problem getting
to the present price in record time. I see no reason why that would be
a hinderance in the future. If institutions wish to get involved after
NASDAQ listing our float will be considered small.
If. Small word. Huge implications. And the fact of the matter is
EDIG has ALOT of shares out for a company its size. Actually it is
alot of shares out for a company many times it size.
5.) Emerging growth companies aren't evaluated on the traditional
"market cap" valuations. They are evaluated on perceived future growth
potential, usually several years into the future.
This is a penny stock bro... It's a crap-shoot. IF the "perceived
future growth potential" turns out to be unrealized, as it has in
Woody's other companies and even in this one ... "revenue has been
delayed for this quarter...", or any amount of the current price of
EDIG turns out to be based on hype, then you will see a fall in share
price that will make the rise look like it happened in slow motion.
I've seen it many times.
Bob, I am being as honest as I can. I have no malice towards
shareholders in this company. I still am one after all. I am looking as
hard as I can at what could go wrong with this scenario and I see
lots. I have to. That's how I make money. Even if EDIG goes to zero it
will have been a '16 bagger' for me.
Best regards,
cAPSLOCK |
