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

To: Burt Roger who wrote (10826)	2/6/2000 5:18:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 18366

Burt, I have NO "track record" with management. sdr's suggestion is pure speculation, which even he admits. This is pure, unfounded rumor-mongering with no basis in fact, and I think I am owed an apology. But this is just the kind of "attack the messenger" approach that I expect in a pure hype stock such as this. My interest in this company was sparked by the front-page article in the San Diego Union. My interest in PTSC was sparked by an article in the business section of the San Diego Union a couple of years ago. That's the extent of my association with Woody Norris or the company - they just keep popping-up in the newspaper in unfavorable light, year after year after year. Occasionally, it sparks my interest enough to do a bit more digging and see what this character is up to now.

To: Burt Roger who wrote (10826)	2/6/2000 5:32:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 18366

IBM, Lucent, and Intel have their use for EDIG. I think I have adequately explained what it is. They need "demo" software to show off their chips, and EDIG is a cheap and easy way for them to get that demo software. It is a lot cheaper for them to licese EDIG's software at $10 a crack than to develop their own, for only the 200-300 copies they will need for evaluation units. None of them have any need for a large quantity of licenses, and none is likely to ever ship more than a few hundred evaluation units using EDIG's software. EDIG may well get additional licensing opportunities as a result of customers of these chip companies using their reference designs. More likely, though, they will get only small orders, as the companies use their software to boostrap while they develop their own, more cost-effective software. This happens all the time in the industry. Small companies are taken advantage of in this manner regularly. The expectations of licensing revenues are unrealistic - nobody is going to pay anything near $10/unit to license this softwae, except in very small quantities. What I see happening here is the kind of phantom math that propelled IoMega to it's peak. And we know how that story ended. Soon we will be hearing the stories of billions of Chinese all carrying around players with EDIG software which the manufacturer has paid $10/unit to license... That is the kind of math that will be needed to justify the valuation of this stock.