RE: Legal Actions: Sunpoop-SGE...PO is fully paid...DaBoss
posted on
May 13, 2006 08:09AM
Look, if Maycom still hasn`t delivered, it`s unlikely they ever will. Probably EDIG could get their deposit back from Maycom; that`s $600K. They`re on the hook for $790K with digEcor. EDIG would have to come up with the (profit) difference, or $190K. That`s the impact assuming no insurance. Well, that plus any litigation costs with digEcor, and with Maycom (we`re hit comin` and goin`). All this assuming no insurance (which is what I assume). Total hit could be as much as $250K, IMO (probably less). Still not THAT big a deal - 2.5M shares of added float, or about 1% of existing. That`s like NOTHING! And I`m talking worst case scenario.
Another scenario, already mentioned by the company, is for EDIG to engage another supplier to fulfill Maycom`s obligation, thereby providing a valid remedy to the digEcor dispute. And, in some (most?) cases, contract law dictates that if a supplier cannot fulfill a contracted order, they HAVE TO PAY for the production by another competent supplier (regardless of costs), plus any penalties for non-timely performance under the original contract. Under this scenario, impact to EDIG is virtually NOTHING, other than some headaches.
And what if EDIG DOES have insurance? No hit....
But some apparently haven`t figured any of this out and take the opportunity to go nuts about it, making it sound like the end of the world, while from my view it`s quite trivial and NOT EDIG`s FAULT!
Then they claim they aren`t bashers and wish the best for this company. Yeah, right.... Either they are so inept/ignorant as to not being able to figure out the above, or ????
These things I KNOW!
SGE