OK, since you asked.

There is a vast difference between EDIG earning $101 million vs $999 million, but let's consider the big picture.

These are NET dollars to EDIG...which I cannot emphasize enough, and I think the market has not focused on that just yet because we still only know the numbers from settlement #1 to date. However, as more dollars impact the bottom line and EDIG finds itself eclipsing critical mass, those dollars falling to the bottom line will be that much more impressive and EDIG could show a steady Q over Q improvement that is unheard of for most penny stocks.

That in itself is a market play for many potential investors.

Also, consider that this model is locked in for years to come based on the sheer numbers (184+) of infringers, which further adds credibility and confidence for new investors to consider when comparing EDIG to other penny stocks.

There is safety in this business model. It is not economy driven but rather based on historical sales for each infringer from the past decade, which is a multi billion dollar market.

The unknown factor in this analysis is, what will EDIG do with the money. They would concievably have no debt and a steady cash flow with a very lean balance sheet...things that do not exist in todays markets for most companies, who are finding themselves bloated, cutting jobs and looking at thinner margins.

So what EDIG leverages with its new found wealth will impact valuations as well, and that is a wild card we cannot yet evaluate.

So I don't disagree with your analysis for a buyout presently, based on what we know today. Where I think we may differ is the top end PPS as this story gains exposure and momentum to the markets at large.

If in two years EDIG has $50 million in the bank with no debt and an annual nut of about $12 million and is looking at banking more cash in these economic times, they will be eyed for their existing cash and future cash flow.

However, with 300 million shares out, they will probably remain immune from a takeover, unless a particular infringer finds itself with a large exposure rather than these early settlement dollars as an option.

I'm not here waiting for any buy out. I am anticipating a markedly substantial PPS improvement from these levels and am positioned accordingly.