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Tinroad: I read your comments with great interest.
I would take absolute disagreement with the line:
What existed was "free discussion" and it was a "healthy forum". It was posters all of one mindset, making personally biased statements and then others nodding their heads with agreement telling each other they were right.
I used the example of going to the Democratic National Convention in 1984 and asking them who would win the Presidency. 99.9% of them would say Mondale, and Reagan carried 49 states. This discussion would have absolutely no value, and this board was similar.
I don't think I have to prove this point, as mentioned posts were deleted by you and GoSilver and then reinstated by the powers that be when nothing was found wrong with them.
If you remember Tinroad, you kicked me out of Ihub because I was making a case that what was written in the financials was different from what was being said in the PR's. As we all know now, many of those PR's never materialized.
I believe the topic that you booted me for was mentioning that I was hearing Dataplay was not going to meet their launch, and brought up the fact that the CEO tried to launch to other media storage companies and failed. After saying this I was gone.... In hindsight, obviously it was a very worthwhile and truthful statement that had real value to EDIG investors. But you silenced it.
To stress the fact more that this was a censored board look at your post that I am answering.
Your whole post is gauged to what to do about the bashers here. Shouldn't we also address the hypsters that will say anything no matter how false and misleading to selfishly profit as well?
To prove my point Tinroad, here is an honest question:
"...blow away anyone who consistently trumpets the same position and heaps scorn on those who dare to dissent."
DABOSS absolutely fits this description. In keeping true to your statement should DABOSS be "blown away"?
Honestly,
Take a look back when Edigital issued shares each time. Raging Bull always knew /posted it first. And after a while Ihub caught up, basically because one person always posted it and no one wanted to post anything bad, regardless of the reality and truth. If this person leaves who usually post the stock issuance, Readers of this board will never know.
I agree that civility should be brought back to this board, and I am a guilty as most hitting hard to people who I think and not truthful and trying to take advantage of people.
But I fear Tinroad your sense of what is a worthwhile, free and honest exchange board to you is pretty much a tightly controled board with everyone nodding their heads and drinking the Kool-Aid, as we had when you and Gosilver where the moderators.
To really determine if you are commited to a free, civil, hype and bash free message board in which you claim... I would ask you again to answer my DABOSS question when considering you statement.
Should he if he continues his posting ways be kicked off?
Otherwise it is just a nice little speech post.
CASS: One more question for DABOSS:
DABOSS, Have you ever been under a contract w/ EDIG?
You should start with this one... It is the right avenue to go down : ) ....
I will add one of my personal favorites:
DABOSS, have you ever felt any pings of conscience trying everything within your effort to get hard working people to buy this stock over the past four years, including fathers with their savings for their kids' college, and these people eventually losing all their money based on your advice?
I think it is safe to say that if DABOSS has no pings. He can 'afford' to :)...
DABOSS: EDIG hit $.16 on nonexistent volume....
It has been straight down since the CC.....
I am not sure why?
I thought you told everyone that E & Y resigning and EDIG getting a budget accountant was a very good event for the company?
So I am unsure with your comments as to why is everyone unloading? Are they wrong? Have they been wrong for the last 3 years?
Please comfort us...Please we need some talk in the realm of "expect", "forecast", "believe", etc...
GoSilver: I am definitely a liability to those who try to suck naive people into this stock to benefit their own pocket books.
You should form a support group with DABOSS....
"Those who never answer questions directly that would get down to the truth..."
I asked you want are the top 3 reasons in you , hehm... professional opinion, why an auditor would resign a client...
And your answer... EDIG changed them to save money because of assets and liabilities...
This has NOTHING to do with Assets and Liabilities.
EDIG did not change from E & Y to save money on the income statement....It was not their choice...It did not say today that EDIG changed their auditor...
Nor, would they have waited this long to change them if it was a money issue. They have been hermoraging money for 4+ years...
E & Y resigned, aka dropped, EDIG and then they had to go out, get another auditor because they were dropped, and rationalize and spin it to their shareholders as if it was their decision to save money. Which again speaks to the very heart of this company's credibility.
Similar to your deflection statement, "It is an asset,liability decision....."
If this was true the move would have been initiated on the EDIG side. The 8K shows inarguable this WAS NOT TRUE! You purposely stated something that was not true.
Doni:
Here is the post, credit to ButAnyway, the without a doubt shows that E & Y resigned as the Edigital auditors despite what DABOSS tries to confuse people with.
http://www.investorshub.com/boards/read_msg.asp?message_id=867254
They (E & Y) iniated the action. And despite DABOSS' deflections of the truth, E & Y resigned and that is not a GOOD sign!
A couple reasons why an accountant firm would resign a client:
1) They were not paid for their services
2) They had a discernable difference of opinion w/ mgmt on how the financials should be stated.
3) They had personal problems with company or how they worked together.
There are other reasons, but this is my guess as the top 3. I can not thing of one reason why an accounting firm would walk away from business that is a good reason. I mean especially in this poor business climate. All of these firms financials are suffering b/c of the economic slowdown and they would walk away from money if something wasn't wrong????
They issue a feel good statement on the disolution that falls under it is a small world, so lets not speak ill of each other. I have been involved in these type of statements with business associations even when we couldn't stomach each other.
This is yet another red flag IMHO. Stevie Wonder would know the deal by now, and yet DABOSS asks me if I am excited about the next shipment of O1000 coming in, which Digitalway is currently only "Marketing" this unit, not producing it... and the second shipment should have been here close to 2 months ago in a competently managed company.
doni, I hope you see.
GoSilver: You should also mention that you were an original moderator of this board, and very pro-edigital, and was known to delete posts that were critical of edigital. Some of these posts were eventually reinstated as the owners felt there was nothing wrong with them.
So, in honesty, you should mention all your associations if you want to pass your judgement or opinion on as an objective, professional one.
That being said, since you are an accountant, can you mention the top 3 reasons in your opinion why an accounting firm would resign a client? I have an idea, but I would like to hear yours as an accounting professional.
So DABOSS: You will not go on record saying that E&Y did not resign and initiate EDIG needing another firm in the first place.
You know, to do this would be to ignore the facts and specific wording of today's filing.
I thought you would answer as you did - deflecting it.....I mean what choice did you have?
The Facts and Truth really pigeon hole people.
Enough Said.....
BA: I need open heart surgery,but I'm hiring a Podiatrist...
This would make absolute sense if you use DABOSS' reasoning.... I saved money...case closed....
DABOSS: E & Y "RESIGNED" Get IT?????
You keep mentioning that is was an e.Digital fiscal decision but the filing shows it was initiated by an E & Y decision.
THEY RESIGNED.....
THEY RESIGNED.....
THEY RESIGNED.....
Get it???
Let try to be factual here. Spin is not factual.
Now why did they resign? That is the question.
If I am not being factual, Please post a message stating that E&Y did not resign and what I am saying is not true...I'm waiting.....LOL
Here are my favorite Q&A's... I am getting all teary-eyed and nostalgic:
Q: When will the Eclipse by Fujitsu Ten product go on sale?
A: The timing of retail availability will be announced by Eclipse by Fujitsu Ten.
Comment: Interchange Fujitsu Ten with Hytek, Hango, Intel, any OEM EDIG was/is dealing with. All EDIG stockholders know what the "OEM's time table controls the announcement" means.....
Q: What is happening with bundling?
A: We are negotiating with PC manufacturers and other hardware providers
Comment: This one is a sweatin' to the oldies.... We must have heard/seen this "negotiating with bundlers'" realistically 10x by now....
A:Digitalway is marketing their version of our Odyssey 1000 worldwide to OEMs and plans to sell it under their MPIO brand name in Asia.
Comment: Notice the word "Marketing". That is definitely not "Selling". EDIG O1000 is on the market, why is Digitalway only "Marketing" this??? Do you remember Hango marketing the MP2000 meant on the Phantom launch.
Q: Please discuss our PortalPlayer relationship.
A: PortalPlayer is bringing to us qualified customers who are interested in having products developed utilizing the PortalPlayer chipset and e.Digital’s proprietary and patented technologies.
How many times have we seen EDIG saying one of their relationship is yielding referrals??? What did these relationships result in?
A: ...we expect revenues to significantly increase in the following quarter.
Comment: They used "significant" when describing Dataplay's revenues to them... This word is really the kiss of death w/ EDIG.
These FAQ's are the continuing EDIG "wool-over-the-eyes"...
And yet the Shameless Longs can't control themselves in posting it is definitely a new beginning for this old exposed company.
Maybe the Shameless Longs are the ones pulling the "Wool-over-the-eyes...."
Looks like the new auditors need the work:
http://biz.yahoo.com/e/010724/mdch.ob.html
http://biz.yahoo.com/e/020715/agte.ob.html
http://biz.yahoo.com/e/020205/fcm.html
In fairness, Accounting firms do obtain and lose business regularly, but I thought it was interesting that the first few that came up were all losses of business.
Also, when I heard there was a new accounting firm, I said to myself, "I wonder if it was located in Nevada or Southern California..." Southern California. Too funny...
Their home page is kinda' interesting. It gives lavishing praise comments for their work from their clients but never quotes a source or name. Kinda like an infomercial.
Honestly, when I was a broker a senior broker, who was very successful, told me the first thing he reads in a financial statement is the name of the auditor, and anyone who thinks this move will help EDIG with their legitimacy problems, it dead wrong....
DABOSS: We have seen this 1,000 times before:
A run up before the press conference or filing resulting from the hype of this stock and its technical history, then a complete dumping shortly after bringing it to new lows...
This has happened EVERYTIME. Recently, the run ups has been smaller and smaller as people have become smart in regard to this company and how it deals with its communications and shareholders and hype.
When EDIG was hitting the 16's a few days ago, where were you? You were no where to be found - MIA. Now it is up a penny or two and the DABOSS hype show rev's up again!!!
We will talk 2 months from now and see where EDIG is trading. As I have said time is the great justifier for truth, and look what time has done to this stock in the last 3 years. All the company tactics and yours and other hyping can count as much as one penny profit that this company has never seen.
This company has lost +$60 Million - I hope there is a 1.2 Billion dollar revenue annoucement coming to wipe this out and give this company some worth. LOL LOL LOL LOL
More Nepotisim:
As SDR (see post replied to) and I have confirmed, Fred Falk is the nephew of Helmut Falk. It is funny, b/c jdtiii wrote and asked Falk if he was related to Helmut, and the reply came back, "No". Now I am unsure whether jdt's question was "Is he your father?" or whatever where Falk could use plausible deniability (Can you image EDIG doing this?)... but if he asked if Fred was related to Helmut, Falk did not give an honest answer. jdtiii, maybe you can confirm your question?
Here is a Press Release that shows Woody Norris' son was also given a cushy job of turning knobs with American Technology. I wonder if you asked Joe if he was related to Woody, if he would say no as well?
http://www.businessweek.com/bwdaily/dnflash/oct2000/nf20001016_342.htm
A Trio of answers:
1) Milplease: I would say a 3% stake in a company, eventually sold for $70 Million, disappearing from a financial sheet is definitely a material item that 100% has to be included. Are you saying a 3% stake in a company is not material enough to be included? Are you comparing this to paper clips, which even a legitimate company would put in the SGA.
At the time this first came up, there were quite a few loyal longs who were going to check with their personal accountants if thie explanation should have been listed on the financials, Funny, none reported back that it should not have. No Accountant would ever say this should not have been documented. I checked with mine and he laughed at the question.
2) Mitch- It has been reported to the SEC. I posted it to warn people not to buy this stock, and DABOSS asked me to post an accounting irregularity. This one is an obvious.
3) DABOSS - You replies are getting deperate. This irregularity shows up in 4 yearly financials. And you comment Falk wasn't there in 1997. You are really a piece of work, and earn your money...
Hey DABOSS: Here is your Acct. improprieties:
The JAMBA Situation Easily Explained:
From EDIG’s 1997 YE 10KSB (filed 6/26/97), pg. 9:
“the Company's ownership in JABRA at March 31, 1997, represented by 940,734 common shares was 12.1%.”
(Estimated total JABRA shares based on the 12.1%: 7.8 Million)
From EDIG’s 1998 YE 10KSB (filed 6/26/98) pg. 3:
“The Company also holds as an investment 58,600 common shares (less than 3%) of JABRA...”
(Estimated total JABRA shares outstanding based on the 3% : 1.95 Million)
**** There looks like there may have been a 4 for 1 reverse split here, but who knows???)
From EDIG’s 1999 YE 10KSB40 (filed 6/28/99) pg. 41:
“The Company's 58,600 shares or approximately 2.5% investment in JABRA Corporation ("JABRA")”
(Estimated total JABRA shares outstanding based on the 2.5% : 2.34 Million)
From EDIG’s 2000 YE 10KSB40 (filed 6/27/98):
The is absolutely NO MENTION of JABRA at all.
Ok, Here is the FIRST problem. A 10K annual report is supposed to list every source of revenue you had within that year, every expense you had within that year, every asset you held in that year, every asset you disposed of in that year, every liability on your books, every investment, stock your company held within that year, etc..
You really don’t have to look at all the other filings in between these 10K's, the 10K is supposed ot reflect everything that happened in that specific year, and encompass everything on the other filings.
In the 3 10K’s following the YE 1997 10K, there is NO EXPLANATION as to what happened to these JAMBRA shares.
The filings mentioned that the stock on EDIG’s balance sheet was carried at “nil” value for accounting purposes, but as you can see in 1993 & 1996 EDIG sold some of these shares for millions of dollars! So the definitely had a substantial value.
Here is the SECOND Problem: On 8/24/00, GN Netcom bought out JABRA for $40 Million + $35 Million additional payments = $70 Million total.
http://www.gnnetcom.com/usa/news.html
If the 4 for one Stock Split actually happened, which is the best, least damning case scenario for EDIG, there are JABRA 235,183 shares that disappeared from EDIG’s balance sheet with NO Explanation! This has a value of, according to the merger, of roughly $7 million dollars.
Norris, Falk, Putnam and Warden all signed these 10K’s as to their validity.
Also, to say this was an oversight in book keeping won’t fly because the disappearance of these shares happen SEVERAL times on different 10K’s!
Putnam said these JAMBRA shares were sold a few years after they were not listed on the financials for $30.0K...
This leads to the questions:
Why weren't these listed on the financial until they were sold?
Why were they sold at such a riddiculous price?
And what happen to the other shares prior to the final balance liquidation that had no reference of being sold in the financials.
Also, in researching today I found out that American Tech, when Putnam was President, also had a large holding in JAMBRA... Too funny
DABOSS- I am glad you like it...
You were fortunate to get one, since they only had a very small initial run due to severe cash problems - the result of them never being able to make one penny in their existence.
With the way these code blue financials look, and the stock price breaking its support yesterday, that 01000 will be a collectors item.
You can thank the same people who have lost $60 M over the past few years, have never met a deadline or successfully launched a product.
I am looking into whether Putnam is Norris' son-in-law as rumored. He better not watch BY football over "Dad's" house at Thanksgiving...
This company seems to be all about "secret relationships" with this company that are never divulged in public, doesn't it DABOSS?
Hey SDR: Re: Falk's relationship...
Did you know....
That George H. W. Bush and George W. Bush are not related either? LOL....
Now we know Fred Falk his survived incompetence through Nepotism...
The second question is "Is Robert Putnam related to Woody Norris as well?"
I have asked some of the shameless longs here and I never get a "No", I get "How should I know???"
I am working on this.
Putnam was CEO of American Technology by age 35. Most 35 year men become CEO at this age LOL, also considering it looks like it took him more than 4 years to finish college.
The more you peel this onion, the more it smells and you see what this company really is.
SDR R U kidding? Helmet and Fred aren't related???
They just happen to have the same name, and Fred just happen to build his management resume in a company that the President had the same last name...
Now, lets see... What is the chance your last name is Falk out of 280 Million Americans?
If there are 10.0K people named Falk in America, the chance would be .00003....
Now what is the chance that president of a company has the last name Falk out of 280 Million Americans?
If there are 10.0K people named Falk in America, the chance would be .00003....
Now what is the chance that these two unlikely people work for the same company.
The chance would be .00000001...
Now what is the chance that they worked at the same start up company in the very beginning in the same town?
The chance would be .00000000000000000001
Are you joking, they are not related????
IMHO, the EDIG President was given to Falk b/c of Woody's relation with his old man. And he was not fired 100 x over when he should have been because of his blood relation. It makes a nice family picnic but a terrible experience for shareholders...
Falk will walk away a millionaire despite running this company into the ground with a catalog of incompetence and losing all his shareholders money... What will the average shareholder walk away with after trusting Falk???
The PPS broke the $.175 today, I would suggest everyone realize what EDIG has really been and try to salvage some of your money to spend on your family.
DABOSS, my friend, you are priceless...
You mention EDIG will leverage the O 1000, knowing they are dead broke. What will they leverage this with? Other than newly printed Stock?
Then you mention it is on backorder, but fail to mention the reason it is on backorder is that they had riddiculously small run of the unit because they couldn't afford a real size run because they have no money. They even mentioned publically that they did not know for sure they will get in or sell any of these units this quarter. But you make it sound like they had a 50,000 unit run and the phones were ringing off the hook and are now after selling these 50,000 they are on backorder. Too funny.
Then you mention they will have a management shift knowing the Fred Falk's father was Woody Norris' first investor, and he is indebted to him, and there are rumours that RP is Woody Norris' relative. Don't you think if they were going to change mgmt they would have done it by now considering 5 years of making every management mistake in the book and losing $60+ million dollars?
Here is what is going to happen:
The management of EDIG will stay, they may change titles around but FF and RP will stay with the company.
EDIG will continue to issue stock and pay their suppliers and "relations" in stock and these will cash their stock out and get rich. There will also be a new vote and issuing of more authorized shares to do this.
Some of this stock will also go to the mgmt and salaries and they will cash out to.
When the stock is @ $.01-$.03, they might file bankruptcy or just stop filing financial reports.
Woody Norris will walk away rich, FF and RP (Who cashed a lot @ $12.00) will walk away rich, their partners will make their money back and then some, and the thousands of investors who listened to them and believed in them will walk away from their EDIG experience broke.
This is all IMHO, of course... but I have been right in the past.
The Market Maker Myth..
For about the 3 years that I have been here and have own the stock until last Nov., whenever the stock started its tailspin, some supports would say..."The Market Makers are having fun, adding to their inventory for a killing,etc..."
We'll for 3 years that excuse has been absolutely wrong as the stock has consistently and systematically fell southward.
While trading a week or so back at a yearly low, $.175, word got out that another 1 million shares were issued. Don't you think if the market makers wanted to play games with this they would have brought it down a bit, I mean it was really easy with THAT news..
The stock stayed where it was, and didn't go lower.
SO this market makers having fun is 100% a complete lie. What is bringing this copany down is that they have not made one penny is nine years, and have a favorite pastime of issuing stock to keep their own bellies fat and happy.
Redwing: U R Right..EDIG broke its Support!!!
That is a very bearish sign...
I'm I an "AZZhole" because I mistyped the wrong word, or am I one because I have been consistently right about the future and the core of this company and you absolutely can't stand it?
You must boil when someone points out what a farce this company is and backs it with facts, history and financials... The truth comes to light tirelessly likes waves and you are irate because you can't hide it...or ignore it.
$60+ Million in loss capital, non-existent Current Asset Ratio, a catalog of promises and OEM opportunities screwed up... Nothing but hyperbole on the horizon, and now a broken support... good luck my friend.. it is over,
Yeah, and your focus should really be on my post.
Broke its resistance level: A very Bearish Sign....
The great thing about the Stock Market is that it is a great justifier given a sufficient amount time. Short term trading can result in anything happening, but in the long term a stock will meet what it is worth in the marketplace.
The cream of the crop companies will rise and the BS'er companies will deteriorate.
After many years of surviving by top officers hyping EDIG publically, it still doesn't count as much as one penny of profit would.
I give EDIG management a lot of credit for their sales pitched, they hooked me and others people who I consider really bright. The were absolute pro's....Putnam should run for office.
But as I have always said when I was attacked for selling near $.19, Time will be the great justifier...And the more time, the more you will see the justification.
Sent: It is definitely NOT RIDDICULOUS!
EDIG and Apple both started at the same place... with very, almost no, limited resources. You could actually say Woody Norris' bankrole was significantly higher than what Steve Jobs had...So EDIG had the advantage.
You say "Look at all the money Apple has," but the got that money through making millions with successfully launching products...
Edig has issued about 60 Million shares of stock in the last few years to the harm of the shareholders and benefit of the company's fat cats, and has nothing to show for it...to date...
If each of these shares were prices at say $2.00, what do you think Apple would have to show for what they would do with a $120 Million of capital???
It is definitely not a 'riddiculous" comparision, it is right on and speaks to the ground zero problem of this company...
EDIG vs. Apple:
Both are very good at designing attractive, even cutting edge, products for the market place.
The two break in the execution and getting the back end stuff done quickly and successfully.
Steve Jobs is an absolute lunatic, crazed madman, to meet deadlines with no BS, no excuses. He is so much a lunatic, that he has at many times turned off his own people with his lack of compassion, and has lost some good people with the environment.
EDIG, as the article said, really doesn't has that "sense of pressing urgency" to hit deadlines, any deadlines. They have a "Oh well, we missed another one" attitude on product launches. They are a design house who loves the design and hates the implementation.
Napoleon Hill's top selling book, "Think and Grow Rich" breaks down money making into two distinct areas. The money making concept and the ACTING ON IT. Without both of these stages, you will never get rich.
This is why Apple brings millions to their shareholders in profit and EDIG has a +$60 Million loss since they took the name EDIG...
Buzzer: I find your posts "readable"..
But being that you came into existence here two days ago, can you please tell us who you really are? There is no way you appeared out of no where just now, this late in the game, so please tell us your other aliases...
TIA,
As far as not giving a ding-dong Doni-
Do you know the average retail price of a Ring-Ding Drake's cake is 66% higher than one share of eDigital?
Of course Doni you don't care what Loest thinks... It is an expert opinion, that has be proven successful in understanding the best and brightest in new technology, that differs with your message board diarrhea.
This speaks volume why you are still here...Pride commeth before the fall... and the fall will come very soon....EOM
BA: Seymor felt there wasn't an urgency @ e.Digital....
Boy there was an urgency to sell stock on those two days during the NASDAQ application announcement..wasn't there???
It appeared to be the urgency of Normandy....
It is really sickening...And yet still some don't see it.
In fairness, it took me a while to see it, then even longer to act on it...
You know during the Enron movie a little while ago on TV, there was a from the movie... "It was never Enron's intent to make a profit...."
Doni: Here is a listing of File Management Systems...
If you check enough of them, you will see similar charateristics to EDIG's MicroOs.
Quickness, efficiency, Battery drain features, quality ones out there:
http://www.google.com/search?q=%22File+Management+system%22&hl=en&lr=&ie=ISO-8859-1
Are you saying MicroOS is not a file management system??? Funny, publically they have never said this - they have called it everything exciting but, but in their financials they say it is a file management system.
This is the EDIG way, hyperbole in public, reality in the financials..
EDIG's financials are in code blue now,
when Loest bought they were iffy... deteriorating... but iffy.
The same time that I got in... the financials weren't pretty but if the management was competent they could have turn things around. As we all know what happened.. 3 years later the $14.00 share price became $.20, and FF and RP have lost $60 MILLION.
So your argument is Loest must have seen something great in EDIG when he bought his few thousand shares, and knew what he was doing then, but when he decided to unload it and said MicroOS wasn't necessary, his opinion didn't count then, huh doni....LOL?! You seem to have selective listening.
As I mentioned, IMHO the majority of people buy/bought EDIG because of their great 'Marketing Story' (Kudos to FF & RP - they fooled a lot of people - myself included) they had, then upon looking into it, the realized it was just a story.. and then dug deeper into the financials which was the reality of what this company was all about, and then jettisened...
I will repeat, Not ONE MUTUAL FUND on my search a few weeks ago is carrying EDIG.
Doni, why do you think that MicroOS is the end all, and all the hundreds of mutual fund managers, Peter Lynch (semi-retired), Garbelli, and the top technology minds in the country, not one has an investment in EDIG...NOT ONE!
But you, doni, and DABOSS, are so much smarter than these guys who get paid millions for their talent..
Actually, Richard I always felt you were one of the classier guys here, and you like Mallride and a few others are in the classification you are not shamelessly promoting this stock for your own profit to the detriment of others. I feel you just want the best for this stock. And I respect that.
Within about 6 months of buying this stock, flags started appearing where I felt was Putnam was dishing was contradicting the financials.
I hoped, knowing that this is an emotional stock, that it would have a run that I could have got out on. It never came. One thing that added to the time I held was Collier. I felt he gave the shareholders straight answers for once, and I liked that he was expanding the distribution channels. It gave EDIG creditbility.
In regard to making a tactical mistake, If EDIG went up to $2.00 a share after I unloaded this can be argued. But I could by back my entire position today for around $50.00 more. I would NEVER own this stock again, but at this point you can not say it was a mistake. Also no one can time the market, but I am convinced EDIG will go down substantially further. If it does, as I am sure, I was not a tactical mistake. Those who held would be the ones with a tactical mistake.
Quicky mentioning your belief that EDIG is never in a better position than now to capitalize, have you read the financials? They have a $60M loss on their balance sheet they will have to make back before this company is worth something. The have a ridiculous current asset ratio, and are paying some vendors in stock. They have gone in forebearance twice on loans they couldn't pay back. They have ZERO credibility with the investing world and as a company. They are dead broke and don't have the necessary money to succeed in these ventures you are focused on.
In regard to me not understanding the technology. Does Robert Loest also not understand the technology? On Intel that walked away from an EDIG project? Do you know that not one mutual fund is reported to hold this stock? DO these best and brightest finance minds whose job it is to know paradigm shift technologies also don't understand these technologies?
Do you know many complaints have been issued to the SEC about this company? I know of 4 personally.
Richard, I really wish you well.. In a perfect world the honest shareholders who invested for the right reasons would make a fortune in this stock and RP and FF would get their just reward for misleading all these shareholders...IMHO
But we are not in a perfect world, and EDIG sooner on later will find the PPS that their financials warrant --> <$.03.
Thats why I think all should get out now...
As for MicroOS: Robert Loest said it "Wasn't Necessary"...
EDIG has had this patented technology for going on quite a few years.... and to date they have had nothing but serious losses holding the patent on this technology...
This is a good comment to cut through all the B'S' here. Time is the great justifier.
DABOSS and others can beat the drum how great this technology is but it hasn't made a single penny in 5 years. Financials talk, B'S' walks...
Technology/Electronics Companies look 5 year ahead of the curve with their product development. Believe me if EDIG had this godsend, money would be pouring in, and all those companies that decided not to go forward with their EDIG relationship/projects would be signing checks to them left and right...
What MicroOS really is is a normal file management system that EDIG has extremely successfully and skillfully used as a 'Marketing Story'
to sell their stock, and initially get in the door in certain places. They are traveling potion salesmen who are extremely good at selling water. For this I give them a lot of credit.
Really, they are pro's..
What happens is shareholders/companies 'buy' the story on the sales pitch upfront, then down the road and much more research realize that it is not really needed and there are other less expensive options...
DABOSS - Have you ever received any compensation, financial or otherwise, from the company e.Digital?
Have you ever been under contract with them in any way?
In the spirit of honesty, that you invoke....
Beware of those who ignore the reality of Financials...
It is funny, whenever I rebute DABOSS, skreal comes out to play... Interesting....
DABOSS you too are deflecting reality: Companies issue stock
to use these funds to grow their business. I think it goes without saying, that if you are diluting your shares outstanding by 2%, you better grow your earnings by 3% with that money. This is smart management. Competent management.
EDIG has gone from 80M to 140M shares and by adding these 88% more shares...what have they done with it????
With this overwhelming amount of stock be issuing, EDIG used this money to balloon their losses as a company to over $60 Million.
It is safe to say this 70 Million shares issued have been wasted.
If I took this 70 million shares with an average price of say $2.00, I could put this money in a 3% savings account and had earned over $4.2 Million dollars for my shareholders. I would have given $.03 a share income to my shareholders even considering this ridiculous float. For years and years I wouldn't even have to show up for work, or have any overhead... This is the stark reality on how poor this management team is.
So basically, Fred Falk and Robert Putnam should have put this money in a savings account and they would have served their shareholders 1000% times better than if they touched anything....
This would have yield better results than giving 2 incompetent, Woody-Norris-favorite-son boys the chance to show their incomptence in spades, and making themselves rich in the process on the bank accounts of shareholders.
Honestly speaking again, do you think any mgmt who has shown the horrendous results they have, and the miscues, and the less than forthrightness, bordering worse charges, would not have been replaced by now in a legitimate company?
It is said that Falk's father bankrolled Norris in the beginning, and there are rumors that Putnam is his son-in-law.
Both of this if true explains a lot...
You are very dangerous too DABOSS - You paint your strokes to suck people in by tieing EDIG desperately printing stock for their survival to compensate for their inability to make a dime with say GE issuing stock to make a 20% profit on it. EDIG issues stock to make their shareholders lose 20% a year and to pay these two incompetents millions...that if Falk and Putnam were paid based on their performace, these 2 would be making $20,000 a year, with a poor review appraisal from their superior.
And you slick... "Every company sells stock..." You should be more honest...
-BH
CDR: Honestly speaking..The doors are still open because they have issued tens of millions of shares in an act of desperation to survive and to compensate for their own lack of ability to MAKE A PROFIT in their history which to survive on. Basically, they are freeloaders. They are they same as an unemployed son-in-law sitting on the in-laws couch eating a meatball hero that they paid for.
Likewise, they issue tons of these shares to reward themselves handsomely for their incompetence and failure in running this company, while loosing ALL their shareholder's money.
So let's call reality, "reality", shall we????
It does not take any talent nor management savy to print money via stock in a bad economy to survive, it takes talent to be profitable and give some returns back to your shareholders in a bad economy.
The nauseating financials of this company, its outrageous 140 M float for a $2 million revenue company, and the void of management credibility is a triumphant that no deal, no tactic, or no "positive" Putnam spin will overcome in the long run...
So you saying they deserve credit for surviving...is completing missing the essence of the issue.
Sometimes that glass is half full is the balance of the water in it is tainted...
Bruek: I sold everything in November and here's why....
http://www.investorshub.com/boards/read_msg.asp?message_id=579791
I stick around to try to keep things honest, and prevent new, naive people from losing the sums of money I have.
I really don't see anything significantly good enough with the future of this company to offset the "tea leaves" of what is going to happen in the financials...
Also, management IMHO has not been forthright with their investors, to say it lightly, and I do not see anything to suggest this establish M.O. will ever change.
Good Luck to you...Watch your share price closely and have an exit strategy...
Thoughts on the Conference Call:
As I am confident the longs here will tout the conference call, Here are the obvious flags..
1)Their interest expense was $290.0 for QE 12/02. This is 45% of their revenues for the quarter. So 45% of their revenues went to just paying the interest on what they owe. This is reflective of this code blue financial company. What the company did was the switch the majority of their debt to preferred stock with ridiculous terms for the benefit of these new shareholders - hurting the common stock holders. Smoke and mirrors the EDIG way...
A quick mention about DBL. I had many experiences with DBL as a product manager. What they do is buy electronics at distributor cost, put a few points on top of it, then sell it to anyone they can. Distributors are supposed to sell to retailers, but DBL sells to end users as well. This company DESTROYS the maketplace price on any product they deal with. They have what they call powerfaxes which they send out their specials to tens of thousands of people every week. This is then used by competitors of DBL to hit the vendor/EDIG up for reduced pricing saying EDIG will have to meet comp with DBL for them to compete. We discontinued a relationship with DBL b/c of this policy.
2)Falks Optimistic Happenings:
He highlights the O1000 as a bright, if not their brightest, spot. However they then use terms like they "anticipate" getting another shipment in this quarter, and saying "if we are able to ship this quarter"...
This is their bright spot and they don't know for certain they can sell anything this quarter?? Ridiculous...
Fujistsu 10 - EDIG signed the manufacturing contract but Fujitsu is flipping the bill? Don't you think if Fujitsu is flipping the bill they would want to negotiate the manufacturing contract? This tells me that EDIG gave Fujitsu such riddiculous terms in their royalty/fees that Fujitsu let EDIG negotiate the manufacturer. Or, Fujitsu is not sure of the success of this project, so if it goes belly-up as all the other EDIG products have, Fujitsu won't be hit with any costs or liability.
Also, it mentions the Fujitsu product is for the aftermarket. These will not be installed in new cars.
How many of you have changed your car stereo after buying it if it didn't break?
IFE - Digital way is their partner in this? Digital was the same company that unload the EDIG inventory into the marketplace they were holding for them when EDIG went into forebearance on their loan. Too funny, maybe Digitalway will hold the inventory again,and unload it.
Soft Tech/HP - HP is not the end user. That is interesting that there is another OEM that HP will send this product to. Meaning the sale price will have to be very low to HP for them to make acceptable margins on this to justify it on their balance sheet. This will not be a wind fall for EDIG, they will make very small margins on this.
3) Now quickly the future revenue...
Fujitsu - $1 Million "expected" this summer. We the shareholders of EDIG know what the word "expected" means..
IFE - Mentions $1 Million, but gives no date... We the shareholders of EDIG know what this means..
HP - Mentions $1 Million but as shown the profitability will be nill.
So, lets say that EDIG breaks its long history of failure /incompetence and nails the above $3 M in revenue.... and manages to surprise the world and have a 5% earnings margin ($150,000). Understand that their current annual burn rate is around $3.6 million, so even with this $3 million, they have no earnings margin, but we will use 5%. Ok, $150,000 divided by 140 MILLION shares outstanding = EPS of less than $.001 a share... Using an agressive price multiple of 30, EDIG should be priced at $.03 a share.
That is if they survived as a company.
I would advise everyone to sell this stock and use the money on their families. It is over for this company, and deserving so after how they have carried themselves and dealt with their shareholders..
Daboss/Tinroad - You guys are "close" to Putnam...
Can you confirm or deny whether Robert Putnam has any family relationship/connection, whether by blood or by law( ie in-law) to founder Woody Norris.
If this is inaccurate, it should be corrected quickly, if true it should be noted...
Please confirm either with certainty, we have enough Putnamnese around here.. "to my knowledge, Robert has no publically substantiated relationship...etc..."
Sent: You are right, I stand corrected...
It was mistated, it does not speak of frailty of the system itself - it could be a very well performing system, rather it spoke of the frailty of the marketing story/speel they ran with for a few years that MicroOS is indispensible because of the 3 points cited previously and will be a global standard. Time has proven this statement wrong - Time is the great justifier.
I am done posting for the day, have fun guys...
Ucansee:
Your quote:
"If jackasses could fly you and the rest of your groupies would be an airport...."
Maybe true....but if true I still wouldn't have an IFE to take with me or a Fujitsu 10 System to listen to in the car on the way over.
PS Thanks for the personal attack, even though my post was not personal at all. It is my opinion that 90% of the personal attacks here come from and are initiated from the long side. There is an underline current of anger and hostile frustration running through most longs that is quick to showand is misdirected and has been put there by the lack of performance of this company over the past few years.