e.Digital Corporation (fka EDIG)

[Cassandra]

Why would anyone expect insiders to buy the stock when it is a virtual certainty that the share price will continue to decrease (with little pops along the way)?

The insiders know what the impact will be of the upcoming S-3 registration that will cause another 25-35% dilution. The last S-3 was only 15% dilution and look what it did to the share price.

The insiders understand the impact of the Series D Convertible Preferred Shares, which have the "death-spiral" floorless feature. The incentive for the holders of those shares is to short the stock and then cover with the conversion stock to build in a profit.

The insiders know that the company cannot justify its current market cap of $22 million, let alone a higher one.

The insiders know that the lack of liquidity of the stock is a major problem and that further selling will put downward pressure on the price.

The insiders know that even the business that is supposedly in the pipeline is not going to be enough to produce a bottom line profit.

The insiders know that the company is insolvent and surviving only on the most desperate kind of dilutive financing, that virtually always kills the share price.

The insiders know exactly where the company is heading. That's why they don't buy the stock.