The truth regarding valuations ?
What model is the market providing us with today ?
When unproven IPOs were skyrocketing, not unlike PALM, valuations adjusted upward. Based on today's market, after a 3 year down turn and a new market model, your case can be made. But is it going to hold in light of the company's success in new markets ?
What's your house worth ? The material costs vs the market value ? Most could make a case to sell all real estate when looking with that perspective, but that's not the case.
As long as investors are still jaded by the effects of the market downturn and buy 10K with the notion to flip it for a nickel, I doubt we are at a place where we can expect to see the PPS move to make much of a difference in anyone's portfolio.
There's no price fixing here. It's a market and that will dictate PPS based on evolving events. If you think that success in any or all of these markets could generate enough business to get EDIG noticed then this is a very interesting price point to step up into if you have been following this company for sometime.
For traders I doubt EDIG is worth a look due to the tight spread and low volume, and it appears our basher ranks continue to diminish.
The company who comes up with a SARS cure or locks a major OEM into a high profile deal will continue to get noticed by this market.
EDIG needs to execute no doubt, but the fact remains that if any one of several of its target markets hit, this is a whole new ballgame, and you can throw your case of rational vs irrational out the window, because the market will valuate the company based on potential and future revenues, not the balance sheet of 2002.
AI
