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

To: Scott R who wrote (1577)	11/20/1998 11:27:00 AM
From: Walter Morton	Respond to of 18366

Scott, I think the reason the stock is $.06 now and not lower is because NCII increases shares outstanding from 39 million to 63 million. I the shares outstanding had stayed at 39 million, the earnings per share would have looked worse and the price would be lower! If NCII breaks that habit (shared by all of Mr. Norris' companies) and becomes profitable, the 117 million, and possibly 200 million shares outstanding will make the earnings per share so small that the stock price will not advance much (if it advances). If NCII continues to make a loss and continues to increase outstanding shares, the net loss per share could appear smaller than in the previous year and look like the company had improved. However, only a person new to investing would fall for that. As Betty implied, the smart investor would read the SEC filings and would wait until all the convertible shares had been converted before he/she got into this stock. But of course, there will always be a few people how will get into a stock based on the hype they read on the thread and in the news releases. For the most part, unless the current shareholders gain more confidence in the management of NCII and start buying more shares, NCII should not move far from $.06. Again, as an investor in NCII, I hope I am wrong.