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

To: bob who wrote (2348)	2/11/1999 11:59:00 AM
From: chris431	Respond to of 18366

No, speculation on material fact is actually what drives stock. We are using speculation in 2 different manners. Pure "speculation" does not drive every stock. I can look to many companies and see what products they are selling, earnings, expenses, competition, etc. and develop a valuation based on that current information. Those are material facts. The only material facts that we have is a Lanier deal that has been know for some time, 100 devices to Intel, and a "relationship" with Lucent. There is no earnings that can be derived from either the Intel or Lucent deal as we now know (well, whatever Intel is paying for the building of the 100 devices). As such, we are left with the Lanier deal. Pure speculation is where you say "oh, yea, look at all these new deals that are going to be happening" or "wow! Lucent is going to be the standard for online distribution and they will definitely be using MicroOS in their devices" or "Intel will probably be using EDIG devices...." As of this moment, none of the above is true. And stating that this stock is going to rise b/c of unknown information is pure speculation. As I said, Intel may not have anymore dealings with EDIG after the initial 100 devices are delivered. Lucent may abandon their effort into online distribution (it is interesting to note that PAC's primary information on their website is from their digital radio department). These are also speculation. As such, what we do know is 100 devices, a relationship, and Lanier. I will abandon the use of "hype" b/c the discussion simply isn't worth the time. But I will point out that the Intel & Lucent relationships have been pushed ahead of the Lanier deal as important yet the Lanier deal is the only guarantee we shareholders have. I don't know about you, but companies that focus on their current revenue making relationships tend to have better repore (spelling correction, please) with their shareholders than ones that talk about "relationships" with big companies (if you think about a stock scam, which EDIG definitely is not, you usually think about a company that had talked about lofty and important relationships with this great company, etc....not one that focuses on the revenue generating factor immediately before them (b/c they usually don't have one.)) For histories sake, it has been mentioned on this board in the past the use by EDIG management of "dropping names" (although the current situation is not completely analogous). "If material fact drove stock prices, then all trading would be classified as inside information." Again, untrue. If you look at analysts positions when they change or start coverage, they often rely on alot more than "speculation." And it's not "inside information." I guess we must be following completely different markets or analysts (internet stocks aside....which again, is speculation based on material fact....not pure speculation alone). Chris