CDR, nothing will guarantee that EDIG is not forced to sell some shares at prices below .20 - except better market conditions and improved company prospects.
If the investment community begins to see some signs of life in EDIG then the floor price will probably no longer be an issue.
Back on 12/18 I posted this note:
Let me make something clear to all.
I am not advocating that anyone else buy the stock here, nor do I question the rationale of anyone who sells.
I can understand anyone giving up after all of the disappointments we have endured.
This is a high risk stock and only those with high risk tolerance should buy it. Probably the most prudent course for most would be to see how the IFE business develops, what (if anything) develops at CES and how the current debt situation is resolved.
The right answers to those three questions would lower the risk substantially, but the price at that point would likely be substantially higher than the current level.
Well, we now have the answer to the debt issue.
In a few weeks we will know what arises from the expected CES announcements.
And within the quarter the potential for the IFE business should start to become clear.
It is my understanding that the airlines are willing to fund the development costs for the IFE units. This could relieve a lot of the cash strain facing the company and reduce the need to sell shares.
The full launch of the Odyssey 1000 (set to occur at the CES) should also help the cash situation.
For what it's worth, I am more confident today than I was prior to yesterday's announcement.
AI
