Optimistictrader, I have been in is stock since 1999. My first buy was around 2.42 back in May 1999. So almost 14 years later the stock which has always been touted as low to no debt is now .13
No debt is great if the no debt is reached or sustained by revenues in regards to the companies, investment returns, products or services.
Ediigs problem is that no debt is/was achieved and maintained becaue they sold hundreds of millions of dollars maybe more in stock.
You can not just generalize and say or think a company is strong because they have no debt. You have to look at why and how no debt occurs.
I am sad edig had no debt early on. Debt can mean people or huge institutions believe in your product and have loaned or invested money into your business because they feel you have a great product that will be profitable later on.
Remember one of edigs early debts was basically money from Polis and his other lending front companies to help develop some products. Polis made bank doing this, also allowing Falk and Putnam to make bank by keeping them employed and allowing them to acquire and sell cheap stock options .
However anyone knowing the history of edig knows nobody ever stepped up to help fund or launch the products. This is where the debt really would come into play. Edig never had the money to launch nor did TI or any lending agency with real dollars step up to loan or help edig launch their many products over the years.
It's almost as if Fred and Robert never wanted to really launch edig because they knew they would most likely be out of the gravy train daily if it got too big.
So no debt keeps the company safe from BK keeps Freddy employed and receiving a salary and keeps products form the consumers in edigs case.
Don't fall for the generalization no debt is good. Keep it in context optimistic trader.
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