The business of Edig
posted on
Jun 28, 2010 02:40PM
There has been a great deal of duscussion and, for that matter, acrimony concerning the details about the recent contract. Pam has been complaining about the lack of transparency and she is right; but at the same time irrelevant. The same can be said about her attackers.
Nobody buys or stays with Edig at this point because of its success on continuing operations. It makes really not much difference in the buttom line whether they make 20 or 50% net and how many units they sell. We all know that the numbers are not going to be very surprising. Nevertheless, it is nice that they landed a new order. It is a testimony to the quality of the product and the efforts of the management. The market, however, understands all that and has discounted for these very reasons. The present price reflects it.
At this point, we are all here because of the attempt to monetize what they have and this is risky as a number of posters have already pointed out. This too is reflected in the PPS. If the outcome of monetization was certain we would have seen a large number of buyers and the price would have reflected this much too.
Therefore, lets praise the management for landing one more contract and pray that the outcome of the present legal efforts will be favorable. And, as I and a number of other posters have pointed out when the management has the funds, I am sure, its options will increase substantially in terms of products and other arrangements.