e.Digital Corporation (fka EDIG)

[Sentinel]

Actually DABOSS, in Cassandra's defense, she only predicted single digits by August, and out of business by year's end.

Posted by: Cassandra
In reply to: DABOSS who wrote msg# 35898 Date:5/19/2003 1:50:06 PM
Post #of 38036

DABOSS: You've been advocating that EDIG is a good investment at every price point for the last 4.5 years despite the 3.5 year downtrend.

IMO, unless the people who are buying now are hoping for a short-term swing trade based on "expected" news, they are likely to be very sorry when the upcoming S-3 to register millions of new shares is files on or before 6/30/03.

Remember, as an article the you posted pointed out, the holders of the "death spiral" (AKA "toxic" or "floorless") convertible preferred shares have the greatest incentive to short sell the stock prior to covering with the converted shares. How happy will EDIG shareholders be when the holders of the Series D shares begin to short sell them (as did the holders of the holders of the Series C and B shares before them)?

These articles explain it well:
http://www.taylorstock.com/page7.html

http://www.taylorstock.com/OTCBB1.html

http://www.taylorstock.com/OTCBB2.html

Because of the desperate kinds of dilutive financing that EDIG uses just to keep the doors open, shareholders are unlikely to ever see any long term appreciation. IMO, EDIG will be trading in the single digit pennies by August. I will also be very surprised to see the company survive to the end of 2003.


~Cassandra