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

To: Bob C. who wrote (9797)	1/26/2000 11:27:00 AM
From: Bob C.	Respond to of 18366

Post from Raging Bull - OUTSTANDING info: Read This Important Info from Ron. Great Stuff Ron!! From: "Mary Pugh" Save Address Block Sender To: edig@eGroups.com Save Address Subject: [edig] Ron's Valuation Theory... Date: Tue, 25 Jan 2000 20:21:22 -0800 Reply Reply All Forward Delete Previous Next Close By: rgallihugh Reply To: 173896 by rgallihugh Tuesday, 25 Jan 2000 at 11:16 PM EST Post # of 174515 Ron's Valuation Theory... A reporter that found out I made some real money in the last year with e.Digital asked me the following... Reporter: Do you think the current price is justified or do you think EDIG will cool off after the steep climb? Ron: The current price may cool but I am not selling. If e.Digital gets the 300 Million dictation business from Lanier with a 30% margin and a 50 P/E the stock should get a $30 valuation (read Lanier only!!!) If they get more of the digital dictation market from Voice Times partners Phillips, Intel, IBM, etc then dictation only could get e.Digital to a $60-90 valuation in 3-5 years (read I can wait) Now lets look at the music player potential. I am a very facts and figures kind of accountant. But the numbers on the music player make my hands shake. How many personal CD players are in the world? Bill Gates said the CD player would go away in 5 years. Now how many home CD players are in the world? How many Car CD players are in the world? Now add the fact that soon digital music will be sent to your car/home via Internet/Radio and you will have the option to pay for the songs and store them in your player. Now put a music player in your cell phone. Now add up all the Cell Phones/CD players (home/personal and car) that will be sold next year in the world and plug in a growth rate of say 10-15% If e.Digital's Micro Os becomes the standard compression file manager in these devices (and it looks like IBM, Intel and Lucent have already picked Micro Os) then take that number times $4-$8 a unit and divide by the number of shares outstanding. Then multiply by a 50-60 P/E and what do you get ( a good researcher would have done this long ago) I could run the numbers for you, but if I gave you the number you may take it as a joke. After you do that remember e.Digital is working on Video for small devices. My guess is it will be a Blockbuster!!!! Let me tell you something, understanding emerging markets and who will win big is how big money is made my friend. Sell for small gains today, or hold to be in the real money in a few years.