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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 (2363)	2/11/1999 1:46:00 PM
From: chris431	Read Replies (2) \| Respond to of 18366

Hmmmm....simply put, it's a $3 million contract for a company that has 1XX million shares outstanding and will probably continue to lose money. While I do not recall the avg. loss per quarter or the avg. expenses and do not have time to look for arguments sake, I did grab this from yahoo: "For the six months ended 9/30/98, revenues decreased 64% to $255 thousand. Net loss applicable to Common Stock increased from $326 thousand to $956 thousand." We'll do some very simple math (I do not mean that derogatorily....I simply mean we both understand it doesn't say much....only done to make a point). Let's remove the revenue decrease and thus we still have a loss for 6 months at $700,000. X2 (for the year) and we have $1.4 million. We have a $3 million contract from Lanier. Let's speculate that is for 1 year and that expenses remain at $1.4 million (they'll likely increase though). We'll give ourselves a $1.6 million profit. Divided by 1XX million shares (we'll be generous and say 130 million). That's $.01/share profit. Now you can give it whatever multiple you would like. As of now, we have a 23x multiple on a stock that has serious dilution and non-recurring revenues. None the less, I think the math above is very generous and were not likely to see a profit immediately from the Lanier deal if it remains at $3 million (if ever). Now, why don't you explain how the Lanier contract, that we now have (no speculation, please) will make EDIG go "beyond" where it is presently? Chris