e.Digital Corporation (fka EDIG)

[Cassandra]

talons: Management and the BOD are telling you that they do not believe that the stock will be going up in value and they are right, just like their selling near the peak in Feb 2000 indicated that they thought it would go down from there (they were right then too).

The fundamentals of this company are just about as bad as it gets and the stock is becoming increasingly illiquid with low volume of trading. I don't see any real potential for it to ever go back up since there are more things in the future that will put downward pressure on the price than an upward push.

Keep in mind that the company still needs to sell shelf shares to stay in business. So the company competes with any shareholders who wish to sell some of their position.

But even worse is that another round of massive dilution must occur on or before 6/30/03 with another S-3 registration of common shares. It is possible or even likely that the company will register all remaining uncommitted unregistered shares up to the limit of 200 million authorized. That would cause another 30% dilution.

So even if the company begins to find success, it is extremely unlikely that they will ever make enough profit to support a legitimate valuation with 200 million shares outstanding or even the current 150 million. The stock is much more likely to continue its three-year downtrend than to go back up. If any large shareholders try to liquidate, it could tank the share price into the single digits.

If you're heavily invested, I would strongly encourage you to talk with a qualified investment advisor about the fundatmentals of this stock and to help you devise an exit strategy to preserve whatever capital you have left in EDIG.

Don't look at your loss, but if the stock is likely to go up in the future or not. If there are other investments that are likely to go up than EDIG, you're better off taking the loss and putting it in something that is much more like to make some of that loss back up.

This board may be helpful: #board-1625 It's a new board, but there are some helpful posts there and if you want some help, they'll do what they can.

Here's a post with other board references: #msg-850109

Good luck!