cAPSLOCK, a huge correction to your previous post. You said the following:
EDIG has accumulated SIGNIFICANT debt in the double digit MILLIONS of dollars.
I take it that you meant the accumulated deficit of ($40,983,774) that you were talking about.
This $40 million is NOT debt. You are confusing borrowed money with carry forward losses. e.Digital has NO debt. None.
What it really is, is a 'get out of paying taxes pass' for roughly their first $40 million in profits that they make. So instead of a huge bad thing it is really a huge fantastic thing.
Once e.Digital gets a rollin' with these Lanier shipments and the DOUBLE DIGIT OEM contracts for music devices, they are going to have some fantastic net margins to go along with their staggering revenue growth.
So in summary, e.Digital has $2,271,659 in cash, no debt and a get out of taxes pass worth $40 million. Shipments to Lanier in progress and at least 10 OEMs lined up to pay them royalties and licensing fees and on some, manufacturing fees.
You know who their global partners are and the huge markets that they are targeting with those global partners.
I'm sure that we all are aware of how big this whole digital music download industry is going to be.
Sometime in the next couple of months we will be reading articles about this new industry everywhere. TV, newspapers, magazines and online articles to name a few. I feel that it will become one of the most hyped industries to come along in a quite a while.
The reason being is that it is one industry that affects virtually everyone. Almost everyone buys and listens to music, everyone understands music, it's not like trying to understand B2B or eCRM or fiber optic electronics etc. Look at the hype surrounding all of the those industries. Look at the valuations of many of the companies in those industries.
EDIG currently is negotiating with at least 10 OEMs, including Maycom's OEMs, and Putnam said imagine how many in the next 2 to 3 months. Then it should come to no one as a surprise that e.Digital's player design will become the standard of one of the most hyped industries going. It will become a Gorilla in at least one portion, the hand held players. The valuation that e.Digital could be given could be enormous. We know that they are also involved in the auto and home audio industries as well.
All of this without even valuing in the Lanier type devices, VTT/TTV devices, moving video players, PDAs, or embedding into DSPs and Processors.
Everyone that talks about how overvalued EDIG is doesn't look out to the future far enough. They don't have the vision. They don't have the patience.
Mark |
