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Message: Vivitar Thoughts

Vivitar Thoughts

posted on Sep 10, 2007 07:51AM

Hmmm. Well.... interesting as always. A few comments:

1. It doesn't surprise me at all that the first company is someone that no one would have guessed. It fits in nicely with EDIG's profile and our experience. Very little of our history has been accurately predicted before the fact - at least with respect to actual details as opposed to general trends.

2. Vivitar does not seem like a very big company to me, yet they are not 'nobody'. At least most people have heard of them before. This is nowhere near as good as Samsung, Nokia, or TI, but at least it's not TGE or Musical. If Vivitar was acquired for 26M in stock (did I read that right?), how much could annual net sales be? How much from the BRLC report is Vivitar I wonder.

3. This almost has to be low-hanging fruit. Surely DM ranks companies/products according to the relative strength of their case against them and/or the likelihood of securing a settlement. What, are they going to start out with one they don't think they can win? It occurs to me that "among the first" isn't necessarily the same as "the first". While we speculate as to DM's strategy, this seems like a good initial move. A relatively quick settlement for even one or two million could help EDIG's bottom line significantly I think - to say nothing of the precedent it would help set for future negotiations.

4. That this came on-time and well before the last minute is quite noteworthy in my book. As DABOSS has effectively stated, the company has been doing a much better job of managing shareholder expectations and following through on its statements since Will came on board. I like the new EDIG... gives me real hope for the future.

5. Now that DM has filed, I assume that 80-90% of the preparations are done and we are well on our way to the next stage. In general, I'd have to think that their case would be mostly the same regardless of who they file against, so that future filings should not be months apart. It's not like they have to start completely over again for company number 2.

6. It helped to be reminded that DM didn't get into this for Vivitar. This is the tip of the iceberg (and hopefully a glacier). I didn't expect the share price to move much at all this morning (maybe a penny or two). And while I think 99% of the buyers are likely existing shareholders, the kind of move we're seeing today is quite encouraging. While ultimately it's the settlements that should drive the greatest share price increases, one shouldn't discount emotion and momentum to put in a good showing as well. And compared to what we think is waiting in the wings, this is nothing.

- Sinkman

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