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Message: Re: Sophistocated manipulation- Five things you need to know about Edig before

Jun 24, 2009 04:14PM

pretty harmless.

Jay

1

www.DavisJonesResearch.com

SPECIAL REPORT

January 28, 2008

e.Digital Corp.

(EDIG:OTCBB)

Company Information

Name:

e.Digital Corp.

Website:

http://www.edigital.com

Address:

16770 West Bernardo Drive

San Diego, CA 92127

Phone:

1-858-304-3016

Stock Information

Ticker:

EDIG:OTCBB

Price:

$0.12

Shares Outstanding:

277.41 million

Market Capitalization:

$

33.29 million

52 Week Range:

$0.08 - $0.195

SPECIAL REPORT

COPYRIGHT © 2008 DAVIS JONES RESEARCH

ALL RIGHTS RESERVED

5 T

HINGS YOU NEED TO KNOW ABOUT

E

.DIGITAL CORP.

1) The management team running e.Digital Corp.

is experienced and capable of growing the company

Taking a company public doesn’t guarantee success.

A successful public company must have a management

team with the experience and expertise to create value for

shareholders. They must know how to establish and execute

an economically viable business plan, build the brand and

company image, organize and motivate employees, and do it

in as timely and cost-efficient a manner as possible.

The management team running e.Digital Corp. is capable

of this. They are solid and have a history of success. Not only

is the team experienced, but they are driven to grow the company

and create shareholder value.

2) e.Digital Corp. has a relatively low number of shares outstanding

Companies with a low number of shares outstanding are

advantageous because shareholder value has not been diluted.

Also, companies with low outstanding shares are often

more explosive relative to companies with a large number of

shares in the marketplace.

Source: Bigcharts.com

2

www.DavisJonesResearch.com

SPECIAL REPORT

January 28, 2008

e.Digital Corp.

(EDIG:OTCBB)

Company Information

Name:

e.Digital Corp.

Website:

http://www.edigital.com

Address:

16770 West Bernardo Drive

San Diego, CA 92127

Phone:

1-858-304-3016

Stock Information

Ticker:

EDIG:OTCBB

Price:

$0.12

Shares Outstanding:

277.41 million

Market Capitalization:

$

33.29 million

52 Week Range:

$0.08 - $0.195

SPECIAL REPORT

A low number of shares outstanding means a tighter float

and, consequently, a smaller marketplace for a stock. Since

share prices are determined by supply and demand, a sudden

increase in buying will likely overwhelm the number of sellers

and result in an upward price surge.

3) e.Digital Corp. has the right promotion

Being the world’s greatest company means nothing if no

one knows about it. A company needs to actively undertake

investor relations and publicity campaigns to spread the word

about their product or service.

Doing this not only brings exposure to the company, but it

will inevitably bring in new investors and add liquidity to the

stock – a very good thing.

An illiquid is stock makes it difficult for investors to

enter/exit positions quickly and invariably results in larger

bid/ask spreads. Large bid/ask spreads translates into money

out of your pocket because you aren’t receiving optimal pricing.

Many microcap stocks suffer from a lack of liquidity. However,

with investor relations and publicity programs in-place,

e.Digital Corp. is actively working to ensure a liquid environment

for its stock.

4) e.Digital Corp. has a relatively small market capitalization

If you multiply the price of the stock by the total number of

shares outstanding, you get the company’s market capitalization.

e.Digital Corp. currently has a market capitalization under

$250 million which falls into category of microcap stocks.

Microcap stocks can be volatile. However, the potential

upside is far greater than that of a larger company. That’s because

it is statistically easier for a small company to double or

triple in size compared to a stock with a large market capitalization.

Therefore, the returns on microcap investments such as

e.Digital Corp. can be staggering.

COPYRIGHT © 2008 DAVIS JONES RESEARCH

ALL RIGHTS RESERVED

3

www.DavisJonesResearch.com

SPECIAL REPORT

January 28, 2008

e.Digital Corp.

(EDIG:OTCBB)

Company Information

Name:

e.Digital Corp.

Website:

http://www.edigital.com

Address:

16770 West Bernardo Drive

San Diego, CA 92127

Phone:

1-858-304-3016

Stock Information

Ticker:

EDIG:OTCBB

Price:

$0.12

Shares Outstanding:

277.41 million

Market Capitalization:

$

33.29 million

52 Week Range:

$0.08 - $0.195

SPECIAL REPORT

5) e.Digital Corp. is still “under the radar” of Wall Street

A sound strategy for making money in the markets is to

buy a rock-solid company while it is still ‘under the radar” of

Wall Street. By getting in before anyone else knows about the

stock, you position yourself to ride any price appreciation as

other investors discover the company’s potential.

Because e.Digital Corp. trades on the OTCBB, the stock is

not yet known to the vast majority of Wall Street’s big money

players. As e.Digital Corp. develops its business and increases

marketing efforts, it could attract a larger following

from Wall Street. And that could send the share price soaring.

COPYRIGHT © 2008 DAVIS JONES RESEARCH

ALL RIGHTS RESERVED

This publication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.

Investing in securities is speculative and carries a high degree of risk. This publication, its publisher, and its editor do not

purport to provide a complete analysis of any company's financial position. The publisher and editor are not, and do not

purport to be, registered investment advisors. Any investment should be made only after consulting a professional investment

advisor and only after reviewing the financial statements and other pertinent corporate information about the

company. The publisher, editors and consultants of this publication may actively trade in the investments discussed in

this publication. They may have substantial positions in the securities recommended and may increase or decrease

such positions without notice. Past performance does not guarantee future results. This publication is based exclusively

on information generally available to the public and does not contain any material, non-public information. The information

on which it is based is believed to be reliable. Nevertheless, the publisher cannot guarantee the accuracy or completeness

of the information. This publication contains forward-looking statements within the meaning of Section 27A of

the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected

continual growth of the featured company and/or industry. In accordance with the safe harbor provisions of the

Private Securities Litigation ReformAct of 1995, the publisher notes that statements contained herein that look forward

in time, which includes everything other than historical information, involve risks and uncertainties thatmay affect the company's

actual results of operations. Factors that could cause actual results to differ include the size and growth of the

market for the company's products and services, the company's ability to fund its capital requirements in the near term

and long term, pricing pressures, etc.

HRH

Jun 25, 2009 09:45AM
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