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Message: RE: Still sticking to the script...Is this a slight change?

RE: Still sticking to the script...Is this a slight change?

posted on Sep 28, 2005 11:51AM
Before they said ``revenues``, now they say ``ship``. the revenues they previously spoke of are a result of these shipments/deliveries. Job done. I wouldn`t get too excited about ``exceed`` versus ``approximately``, especially in light of the foregoing.

Pure speculation, but I`d say that this has to do with either one of two things:

1. They`ve received orders (from APS/Wencor - re-orders plus new) and are staying mum about it. By changing their canned statement, they avoid the revenues issue and simply repeat what we had already heard. Unfortunately, this prompts a bad thought in my mind, in that events that can be expected to significantly effect financial status must be timely reported in some fashion per SEC regs. The negative though has to do with:

2. They`ve have NOT received orders (from APS/Wencor - re-orders plus new) and are staying mum about it. Again, by changing their canned response, they avoid the issue (for now). And, if this is the case, there is no reporting requirement.

Now, having said all that, I then consider what Brent Wood has said recently. Eight re-orders. Could he get away with lying about that? Three known new carriers; two very small and one ordered 900 units. Could those PRs/DD be lies? Several more (four+) new carriers to be announced. I suppose that one could be smoke, but others all sound like done deals.

SOOOO, is Wencor withholding orders to EDIG (as another leverage point)?

As an old logistician, I could see the benefit....Ecomonic Order Quantities (i.e., large order = better price per unit; accumulate airline orders of various sizes, send one large ``batch`` order to EDIG with drop-ship instructions to each individual carrier, or all to Wencor). But this approach does not necessarily consider time/urgency.

So is this still another (childish) ploy to play? I say childish, only because ultimately, it seems, Wencor will have to order units, and where else are they going to go? And if they drive EDIG to ruin (not likely with 100M shares authorized), what are they going to do? And if EDIG found another customer (of larger magnitude), what if Wencor pissed `em off enough for them to just say no? Wencor would be out of the IFE business real quick (and perhaps not be able to support any existing maintenance agreements).

What a saga! Let`s just hope it`s along the lines of item #1, and the quantities to date, taken individually, are not sufficient to prompt a reporting.

And I know nuttin`!

SGE

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