EDIG, the next Qualcomm?

Tuesday, February 15, 2000-- Many businesses enter themselves onto the stock market. Many start out as penny stocks, and die out as penny stocks. These are also known as “bulletin board” stocks. The 8 dollars a trade commercials you see, they do not apply for these starter stocks. You usually go through a broker or an account with a business to buy these stocks, 19 or 20 dollars a trade, usually. To be truthful, not many “bulletin board” stocks make it to the NASDAQ listing. These are the stocks where dreams can come true. The day trader is not the usual buyer. He is one who has patience, and looks at this as a serious investment, because if the penny stock shoots up, you’re in business.

Through the history of the Stock Exchange, many of these stocks have made it, but it came overtime. One of the more famous stocks is Qualcomm. Although it was never in the penny status, it was below 15 dollars a share nearly 2-3 years ago. Now, after two splits, it is at 200. But how could one company have done so well? This is where the average Joe and the expert traders differ. Do the research, and invest wisely. That should be a quote. Maybe someday I will quote that, because it applies to most everything, not just stocks. All right, maybe more towards stocks, but it is still a good quote. So Joe got lucky, maybe got a tip, or liked QCOM, the stock symbol. But the expert trader did his research. He found out that Qualcomm owned the patents on CDMA in cellular phones. You may notice the next time you see yours that the Qualcomm symbol is on it. Also what this savvy investor knew, was that 2nd and 3rd world countries do not have an abundant source of telephone services. So obviously they would buy Qualcomm’s products, along with global 1st world countries. Basically, if you had bought 500 shares at 10.00 you would have 400,000 dollars now. That is quite an investment. An investment that started at 500 dollars could be sold for 395,000 dollars profit.

A stock that shares much of the same qualities as Qualcomm is e.Digital. E.Digital, known short by EDIG, also owns patents on its MicroOS file management system.(MicroOS?) It has a music player that plays back music downloaded from the internet and a recorder that uses MicroOS technology. Many people, who track stocks for a living, call EDIG the next Qualcomm. Some even say that it has some things Qualcomm never had, and could be even better than Qualcomm. They also state that EDIG technology will be a standard for the future. I learned about EDIG form my uncle, early January. Its price was 6.00. I considered buying it, and made up my mind that I would buy when it went down to five, figuring it would fluctuate. Well, it didn’t. Over the next week and a half, it soared to 24. I was kicking myself. Then it declined to a low point, Friday morning to 10, but finished up the day at just under 14. It is very volatile, just like Qualcomm is. The volume over the past few weeks has been enormous, reaching peaks of 10 million shares bought and sold. It is still a “bulletin board” stock, but has currently filed for a listing on the NASDAQ. It looks like a very promising future for “EDIG’ers.”