e.Digital Corporation (fka EDIG)

[Tinroad]

Some thoughts from secforu & BusyBump:

To All Disgruntled Longs
http://ragingbull.lycos.com/mboard/boards.cgi?board=EDIG&read=721078

Last year when the price of this stock was hovering around $20.00 where were the most of you? Well, if I remember correctly you were on this message board celebrating your investing genius and projecting a stock price that rivaled Qualcom’s. Greed was good, so to speak. And it was all because of your ability to spot an up-and-coming company.

Or so it seemed to me.

Now here we stand a year later, some a little poorer, some a lot. The stock price has plummeted, along with what will long be considered one of the great bull markets of the century. But whose fault is it now? Is it really management?

e.Digital, that up-and-comer you were all so proud to be a part of is not the same company. No it’s not. It’s a much better company. It has at least twice the number of employees, more products about to be released than ever before and a top-notch board of directors. Hype? No just what’s been forth by the company.

In addition, within the course of this past year your company has managed to adjust to a marketplace and industry which has gone through tremendous upheaval because of the inability of music companies to make content available. Furthermore, they have aligned themselves with Dataplay, a company that has product that was a stand –out at last year’s CES.

So what has changed? It is the company? Yes, it has – it’s grown, expanded and even prospered somewhat. It operates at a loss, but it did last year at this time too when you thought it and the people that ran it were the greatest things you’d ever known.

And there’s one more thing that’s changed – that would be you. You have lost faith, all but abandoned hope and have turned on Fred and Robert as if they had intentionally misled you. Have they told you lies? Did you ever ask yourself if maybe the whole truth wasn’t made available to them? But they should have told you this right?

Anyone familiar with a non-disclosure agreement knows that it reads like you’ll have to give up your next child if you leak a word. And you will also know that once you’ve leaked information, you can pretty much close your doors for future business. And in an industry as small as this, it would be a most certain kiss-of-death.

But what of the shareholder’s? What our right? I guess in the end, we don’t have much to fall back on. Even the class-action speculation often bandied about here never does much for anyone. Except the bashers, of course, who seize every opportunity to exploit your weakness.

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Still others feel victimized – led astray by the company. How did they lead you astray? By letting you know what they were working on, who they were working with and what products they were developing. You sure did like the news when you first heard it. But where’s the product right? What about this, and what about that? Every shareholder’s letter a promise of things to come. Many of you have said that Robert deliberately hyped the product. Well remember this too. Enthusiasm is no crime. If it were, many of you would be in jail. Most of all remember that this story is not over yet.

Will our patience be rewarded, our frustration be worth it? No one can say. But that is investing – it is what we see in the present that can bring us to the future.

Many of you are honest enough to admit that greed got the better of you. And isn't the current state of affairs in the stock market evidence of the fact that greed got the better of most of us? Not many were spared. There’s only one Warren Buffett and even people who revered him were using his name in vain when his portfolio couldn’t perform.

But that’s life, and that is certainly the way of the stock market – never for the faint of heart or the weak of spirit. But rest assured of one thing - this too shall pass.

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secforu- Just read your post from last night....a good and reasonable analysis of the situation.
http://ragingbull.lycos.com/mboard/boards.cgi?board=EDIG&read=721584

All of us have suffered setbacks in the market these past 18 months, in Edig as well as almost any other stocks owned. The reversal in business that has taken place in the technical sector is like no other in its suddenness and severity. The immediate outlook is dismal.

I think it shortsighted and futile to blame Edig's "apparent" lack of performance on management. Quite the contrary, I feel that Edig has made significant progress behind the scenes as reflected by the substantial increase in revenues, increased employee numbers, and forward-looking statements in recent letters from Fred.

The delays are painful. The financial shortfalls are difficult to deal with. We are suffering and are uncertain when help will arrive.

IMHO, Edig may be one of the few bright spots over the next 6 months, as products and OEMs are announced. We may have to wait a very long time before the likes of former high flyers CMGI, EXDS, JDSU, CIEN, NOK, ARBA, QCOM, DCLK, etc. etc. move off their incredible lows and regain their former highs. Edig will be a new, exciting name, a company whose every increase in revenue will demonstrate rapid GROWTH and promise in an otherwise dismal economic clime.

I, personally, have no regrets in having posted my conversations with Robert over the past 18 months. The information was relayed accurately and only for the purpose of informing. I will continue to do the same as the opportunity allows.

For those concerned, my brother who invested in Edig recently, is not worried but takes a moderate view of the overall market conditions and is willing to wait it out for the recovery ahead, as well as Edig's coming out party, whenever that might be!

Take heart, people! As secforu ended his post, "this too shall pass."