The word is that putnam and falk are using the money from the last three settlements as seed money to purchase a distressed bank. Once they purchase the bank they intend to apply for TARP funds and use that to purchase forclosed homes in the greater San Diego area................

Ok no seriously this is what I think happened. We here on this board as someone astutely mentioned the other day don't represent a large percentage of the 281 Millions shares out there in the float, except for maybe DABOSS, he must have 50 million shares on his own the way he posts here. Love ya D.......

Anyway our lack of real presense in the grand scheme means that we are subject to witnessing from time to time the true mechanics of the markets or perhaps manipulation there of.............heres what I mean.......

As we all have noticed recently, volume has been on the wane, lets face it its been a ghost town. That can make a stock ripe for manipulation. Last week as we began to slowly drift lower it appeared as though someone was "painting" the tape, ie they were selling small blocks at the bid. There is no trader that consiously purchases 200 shares of a .14 stock and then pays say $9 in commission to do so with the intentions of making a profit, for those of you slow on the draw that would be paying 34% commission. So obviously this means the traders must have another motive.

Lets assume for minute you have a stock with low volume, a market sitting at the top of its range after a jaw dropping bounce from some suicide inspiring lows. That leaves you with edgy traders with itchy fingers.

Then along comes Mr. Deep Pockets, he decides he wants some EDIG. One could simply walk the stock down by selling small blocks at the bid from time to time, especially at the end of the day or again when there is NO volume, NO LONG likes to see the stock dip to the lows during the day, the average joe may not realize it might have only been for 500 shares. Last week, the last trade of the day was for like 300 or so shares yet it dropped the price like 9%.....now Average joe comes home, checks on the stock his buddy told him about at the bar on sat, damn thing is down 9%.......Average joe wasn't a believer from the start, well now if it keeps going lower he might be willing to drop his ohhhh lets say his 15,000 shares if it keeps going down. So Joe in effect just helps Mr Deep Pockets walk this thing right down to his price point. Once the price gets to the range Mr. Deep Pockets is willing to pay, thats when the real fun starts.

See Mr. Deep Pockets trades differently than you or I, he might use a service like I-pipeline which promises "leak proof block trading" basically someone has the ability to move large blocks of stock without ever really showing up on the Level 2 quotes that we see.

There were four what I consider for us at .14 and with our volume to be big blocks..........consulting the Time and Sales shows

238,000

192,777

191,391

63,107

That looks to me like the first trade went off at the 238,000 even because nobody was ready for it, Not the MM's, not all the average joes, and certainly none of us. Thats when the computers earned their watts, the next three trades are LARGE and yet not round numbers, again most of us trade in round lots when we are talking about penny stocks. How many of you have entered trades for 6,434 shares of EDIG, probably very few, no it would be 6,500 or at the very least 6,450. I see this as the computers grabbing ANYTHING they could at .13

Then after the 700K or so shares are purchased well then you see more of OUR trades are up there, the random 5,000 here and 2,500 there. The boys had done their stuff and gone to lunch already.

If these had been straight 700K sells, they why would they not have gone off at .126 which was the low, and why did the price keep bouncing back, doesn't seem to me like it could be sells.

my 2 cents.............