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

To: sdr who wrote (15631)	10/28/2000 12:01:49 AM
From: Jon Tara	Read Replies (1) \| Respond to of 18366

sdr, you are right: "I really don't know what Nasdaq has to do with the building of a good solid company/business " On the other hand, neither does building a good solid company/business have anything to do with a stock's price. EDIG is way over-valued, even given the rosiest possible scenario for the business. I have not criticized EDIG's business. They appear to be a fine little company that has carved themselves out a nice little niche. Just not one that justifies a market capitalization of several hundred million dollars. Hopeful shareholders have blown their prospects way out of proportion. Unfortunately, the market has run out of "greater fools" to drive the stock price higher.

To: sdr who wrote (15631)	10/28/2000 12:42:06 AM
From: Jon Tara	Read Replies (1) \| Respond to of 18366

The other shoe, IMO, will prove to be the terms of the $4M financing. If they were favorable, I beleive that management would have disclosed the terms at the time that they disclosed the investment.

To: sdr who wrote (15631)	10/28/2000 12:20:04 PM
From: JimC1997	Read Replies (3) \| Respond to of 18366

My reaction to the news is that EDIG was an unfortunate casualty of both adverse NASDAQ market conditions for development stage companies and the reality that their customers have the final say in the timing of new product announcements. It has been very difficult for any development stage company to advance in price against the adverse market conditions that have prevailed since last March. e.Digital has traded in a band centered around $5 plus or minus about 33% since late April. Without substantial news, it could not escape this range, nor could any other company in similar circumstances. We are about to see the end of that period of news drought. The companies that will market the products that e.Digital has engineered have their own schedules for product launch that are based upon the expected delivery dates for the product from the off-shore factories, not the desires of e.Digital shareholders. It takes a long time to bring a new product to market and although the NASDAQ listing process seemed endless to the EDIG shareholders, it was unfortunately much shorter than the amount of time needed to engineer the products, sell them to OEMs and (most important) obtain both consistent quality from the off-shore factories and the assurance that the quantity which would be delivered from those sources would be adequate to meet the retailers demands. e.Digital has not been in a position to alter that timetable significantly. Their customers will bring their new products to market soon and the shareholders of e.Digital will be richly rewarded at that time. The NASDAQ rejection should be viewed as a transitory event that will be erased by the explosion in growth that EDIG is about to experience. I believed that NASDAQ acceptance was certain and stated my opinion of that expectation on this message board several times over the past six months. I was wrong on the prospects for the application that was just rejected, but I remain confident that the business development of e.Digital will make the company's acceptance to the NASDAQ National Market a certainty in the near future. The company is financially secure thanks to the recent equity investment. Those investors did extensive due diligence investigation of e.Digital before committing their $4 million. Both of these institutional investors are first quality firms and I am sure that no stone was left unturned in their examination of the company. New board members with impeccable reputations have joined the company in the past year. None of these individuals would risk their personal reputations by becoming associated with a company that had an uncertain future. Each of these new board members have the desire to see the company grow and prosper. New engineers, all from the sectors of the employment market which have the greatest demand for talent, have joined the company. None of these individuals would risk their careers on a company that did not have exciting prospects to develop. The company will soon announce partnerships with some major names in consumer electronics and other fields. These firms will join Intel, Lucent, Texas Instruments, IBM, Lanier, DataPlay, QDesign and others in working with e.Digital. All of these companies is entrusting a portion of their future profits to the quality of e.Digital's work. Each of these elements (equity investors, board members, engineers, partnerships and customers) represent a vote of confidence in the future of e.Digital. This is what is important to the investor, not what exchange the stock trades on. The stock may experience some temporary weakness next week if investors listen to the self-serving panic-mongering of the slimey bashers that populate this message board, but the price will soon rise above the NASDAQ $5 minimum and remain above that level as contracts are announced. Anyone who sells into weakness is giving the seeds of victory to the despicable lowlifes who prey on fear and uncertainty in the minds of the individual investor. The opportunity for great returns for the shareholders is very near. Do not quit the race with the finish line in sight! JimC