Replies to post #35966 on e.Digital Corporation (fka EDIG)

[Cassandra]

DABOSS: No, I also bought into the hype in the spring of 2000. At that point the hype was not yet proven to be false as it subsequently has. Fortunately for me, I began to see the light by June 2000 and got out.

Back in 1998 Norris Communications was touting it's "multimillion dollar" contract with Lanier and how it was going to help Lanier expand into other markets.

That hype continued into 1999 when the hype about Micro OS and it's supposed major significance gave the newly-named e.Digital an exclusive patent on the use of multi-codecs in digital audio players and that MicroOS had the potential to become a global standard OS for all hand-held flash-bashed digital devices.

Since then, the VERY lengthy string of much-hyped but never completed promises has become publicly known.

e.Digital was a year late in getting the Lanier device to market and by then the next generation device based on a PDA was already under development. The $3 million original 1998 order from Lanier was never fulfilled by the time the contract expired in December 2001.

MicroOS proved to be a technology that had virtually no demand and numerous multi-codec DAPs entered the market without using its supposed exclusive technology.

OEMs such as Intel, EASTECH, Maycom, Hango/Remote Solutions, Hy-Tek, Samsung, Toshiba, Evolution, etc. never came out with the much touted devices and e.Digital had to resort to making its own players which sold at a huge loss per item.

All of the things that were touted as being potentially "HUGE" for e.Digital turned out to be nothing significant or nothing at all. DataPlay was the most significant.

Now EDIG is touting OEM's for the Odyssey 1000 (a device with generally poor reviews), a mere 4,000 HD MP3 players supposedly ordered by Fujitsu-Ten, a HD-based video player for IFE in partnership with a cargo handler employed by Alaska Airlines, and one contract to work with Softec on IR headphones. The previously hyped DivX, PortalPlayer and Equator Technologies relationships have dropped off of the map along with the Silhouette, the Renegade, the Odyssey 800, the "Puck," etc.

All in all, even if all of the currently promoted things come to fruition, it is not enough for a company with such an inflated market cap and such an abysmal history of promising more than delivering.

I know that penny stocks do not behave like those traded on the major boards, but those with little to sustain them usually run out of steam. I believe that EDIG is close seeing the end of what it can hype to investors without ever finding a way to make a profit.