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

To: Kerry Sakolsky who wrote (14443)	8/24/2000 12:38:29 PM
From: JimC1997	Read Replies (1) \| Respond to of 18366

Yes, I was trying to illustrate the potential valuation impact from a typical contract. Adding more PC manufacturers to the roster of customers would have a linear effect on share price (i.e., each manufacturer should be worth $30/share) if you accept my crude assumptions about price/sales ratio, market penetration and revenue/unit to e.Digital. I tried to paint a more realistic picture of the entire market and what e.Digital might generate in total revenues in my post #14439. There I projected a potential market size and e.Digital revenue for the world-wide market. I estimated the e.Digital world-wide market potential at about 6.4 million juke box units and about 3.2 million portable players. This is about ten times the size I used in my first market capitalization post. That would translate into about $800 million in revenue to e.Digital, assuming that they serve as the product supplier (rather than a licensor of the technology.) Using a more conservative price/sales ratio of 10 gives a potential market capitalization of $8 billion and a share price of $63. (Again, without considering contribution from other sources of revenue!) JimC