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Message: A few thoughts...

A few thoughts...

posted on Apr 28, 2005 07:04AM
First, I think the picture that Ory is groping for is the one of the Cathay Pacific unit.

Second, regarding PPS and bone tossing, it seems to me that EDIG may just be under some pressure right now. As someone pointed out, lower PPS means more shares for friendly investors at conversion. However, as with all of us, I`m certain that the friendly investors didn`t invest solely on the hope of getting even more shares at a lower PPS. It was an investment! They invested with the hope of making money, not more shares. In this light, I`d bet those investors are putting a little heat on EDIG (albeit the ``loss`` they are incurring is somewhat offset by their ability to convert for more). Put another way, how many here bought large quantities of EDIG with the hope that the PPS would drop so they could buy more? Or did you buy with the hope the PPS would go up? Probably the latter... And further, how ``friendly`` will these investors be should EDIG pursue more funding?

Third, I recently went off on the possibility of last qtr being a break even. That thought was squelched by the F-10 legal fees and probable lack of NRE income. But this morning the thoughts are rekindled with the realization that the additional $81K of legal expense for F-10 arbitration was incurred the prior qtr (3Q05). So, playing with numbers, that`s $200K, plus some percentage of a near $2M order for digEs in process at CYear end. If that percentage is 25%, there`s $500K, plus the $200K, putting us right close.....

And I KNOW nuttin`!

SGE

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