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


To: Starlight who wrote (10504)2/1/2000 12:02:00 PM
From: PartyTime  Read Replies (1) | Respond to of 18366
 
>>>"...If you aren't diversified, you're at much greater risk. Meanwhile, if "all your bases are covered", why not go for a risky situation if the potential rewards are great."<<<

Elizabeth, indeed your words are words of wisdom. What you write is especially true when the investment into risk is from money that was gained from profits elsewhere.

But what is the risk? The risk is past performance which certainly has been less than steller, and the current condition of revenues.

So what of the two?

Past performance shows the company primarily engaged in research and development and not concentrating much on revenues. This also accounts for the large float as the increase in shares likely enhanced the company's ability to conduct R&D. We see this all the time with biotech stocks, i.e., a large float helping to support research and development.

Current condition of revenues? Well, things are indeed looking brighter on this front. The Lanier renewal contract coupled with the recent OEM deals will certainly enhance eDigital's bottom line for the next quarter. And within this next quarter we'll see positive Nasdaq developments and very likely more OEM contracts signed.

So if the risk is linked nicely into a good fit with tomorrow's technology and there already exists so many positive signs for eDigital fitting into this technology, I'd say the risk is a good one. A very good one. I'm glad I'm long!