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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?

To: sdr who wrote (8076)	10/17/1999 4:17:00 PM
From: Starlight	Read Replies (1) \| Respond to of 18366

Here's a VERY important article everyone here should read: "The End of SDMI" by Eric Scheirer MP3.com Technology Correspondent mp3.com

To: sdr who wrote (8076)	10/17/1999 5:53:00 PM
From: JimC1997	Read Replies (2) \| Respond to of 18366

sdr, Institutional shareholder reporting is a bit more complicated than you describe. From the Rivel Research web page: In 1975, the Securities and Exchange Commission adopted Rule 13f-1 as an amendment to the Securities and Exchange Act of 1934 to help measure and monitor the activities of institutional investors and their effect on the securities markets. This regulation mandates that financial institutions that exercise investment discretion over $100 million or more in equity securities must file a form 13f quarterly that details the equity holdings in their portfolio. The 13f filing lists the specific stocks they own and the size of each position. Because 13f filers must report this information to the SEC, these data are in the public domain. Thus, everyone is able to access these findings, analyze them and make assumptions about investment styles and preferences. At the same time, non-filers (by definition) are relatively obscure and, in those cases where they are known, virtually no data is available about their investment choices and interest. Among the institutions required to file are: Banks Brokerage Firms Pension Funds Investment Advisors Mutual Funds Endowments Insurance Companies Charitable Organizations A non-13f filer is every type of organization listed above that is not required to file a form 13f because the size of the equity portion of their portfolio during the course of the year is less than $100 million. It is estimated that there are as many as 3,000 institutions that fall into this category. What this means for e.Digital is that is it unlikely that any large institutions (over $100 million in total equity assets) hold any significant number of shares since all of their equity positions (regardless of size) must be disclosed within 45 days of the end of each calendar quarter. Small funds (under $100 million) may have taken positions, since they are not required to disclose their holdings at any time. Actually, small funds are far more likely to buy into e.Digital, since the small market capitalization of e.Digital makes it a difficult purchase for a larger fund. Typically fund managers do not want more than 50 to 75 issues in their portfolios and for various reasons do not usually hold more than 5% of the outstanding stock of any one of those companies. Since e.Digital currently has a market capitalization of about $160 million, 5% ownership would be valued at $8 million. If a fund manager wanted to have each stock held in the portfolio account for at least 1% of the total portfolio (in order to keep the number of stocks managable), then any fund with assets in excess of $800 million could not hold e.Digital, since that would require purchase of more than 5% of the outstanding stock of e.Digital. Jim