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

To: chris431 who wrote (2364)	2/11/1999 3:49:00 PM
From: Kerry Sakolsky	Read Replies (1) \| Respond to of 18366

"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." That's an accurate statement. Your math, however is based on pure conjecture. You're assuming that issued shares will almost triple within the next year, and that the Lanier deal is a one-time order at $3,000,000. The company made the statement that Lanier's initial order will have to be refilled within the first five months, and that the annual order for the next two years is estimated at $8,000,000. >>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?<< I don't know how the Lanier deal will move this stock, and I certainly wouldn't speculate. You've stated that the Lanier deal will not move this stock beyond its current price. Thank you for the explanation. You had me concerned.

To: chris431 who wrote (2364)	2/11/1999 5:11:00 PM
From: bob	Respond to of 18366

The market is giving this company a valuation based on what is known (the Lanier deal) and what is unknown (Lucent, Intel) along with other details such as quality of management etc. Remember too that eDIG has a real product, a superior one I might add, for Lanier. It has also been stated that: "Your math, however is based on pure conjecture. You're assuming that issued shares will almost triple within the next year, and that the Lanier deal is a one-time order at $3,000,000. The company made the statement that Lanier's initial order will have to be refilled within the first five months, and that the annual order for the next two years is estimated at $8,000,000." The market is also giving this statement it's due diligence I can assure you. All of these factors and more go into the market valuation of the stock price including the no. of shares outstanding, those being privately held, insider trades, etc. The point I am trying to make here is that many of us believe the stock price is severely undervalued based on material facts as well as speculation about the future potential of this company. It is entirely possible for the company to turn profitable before the end of this fiscal year and even if it does not the price could move higher based again on speculation, especially if Intel or Lucent decide to strenghten their relationship with eDIG.