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Message: NEWS - e.Digital Reports Fiscal Q1 2010 Financial Results

Here is my honest take - especially for LL

posted on Aug 14, 2009 07:33PM

LL -

Frankly I think that was a surprisingly reasonable post from you... much better than I expected considering my obvious swipe. And it deserves an honest response from me. Let’s go through it point by point, shall we?

Let me be clear - based upon this release and my own DD the company is doing NOTHING at all in the way of product sales and has little or no prospects for same in the foreseeable future. They are, in my opinion, planning on doing NOTHING except keeping the wolves (and shareholders) at bay until whatever the IP strategy they have unfolds.

I agree there’s no evidence that we can point to and wouldn’t be surprised if you were right regarding their prospects for some time. I wouldn’t say they are actively planning to do nothing but I also wouldn’t say that they are aggressively pursuing sales either.

Digecor will have zero impact on PPS (unless the rulings go against EDIG) and they are holding back on NOTHING pending the release of that decision.

We’ll have to see just what impact it has but no, I’m not holding my breath for a big pop once we hear the decision (even if it is favorable). It may well be zero but I’ve learned not to second-guess things since many times when I thought the share price should react, it didn’t - and times when I thought it wouldn’t, it did. My chief desire in this matter is simply to have the ruling become history and hopefully allow the company (and us) to move on. And I think that ‘NOTHING’ is an over-simplification. They could well be holding out on something even if it is just to announce the timing for the ASM. I’m still not holding my breath for anything big, but I’m willing to wait and see and give them a chance to maybe surprise us.

EDIG is now a patent holding company - no more and no less - the EVU is a product that is past its prime - there is no future for a hard drive based infotainment device - either on airlines or elsewhere. Take a real survey of what is being made available to hospitals and airlines and travel and leisure and compare it to the EVU - give me your honest feedback. You can watch almost anything on an iPod now - and people are doing it. Have you flown recently? Have you kept up with what the kids are doing? They don't seem to care about a 7 or 8 inch screen. Are they investing in any new technology? Are they even thinking about a wireless version? I see zero evidence of that.

I have no arguments with any of this. My previous hope had been that Mezzo knew what they were doing and could make the eVU (and any future devices) more marketable. They haven’t yet and probably never will... and EDIG doesn’t seem to know how to accomplish this on their own.

I hope that DM kicks enough ass that the PPS is able to be impacted in a positive way. That is the only way we are going to make some money.

Absolutely correct. That has been my focus ever since DM entered the scene.

If it makes you guys feel more "positive" to take some shots at me, have at it. You are wrong if you think "a stack of contracts" is sitting on RP's desk waiting for the resolution of Digecor to be announced or it you think Fred's comments about "working with" airlines and hospitals means there is a big pipeline of prospects.

I’ve never thought that for a moment.

I guess it's a lot easier to aim your analysis at my posts and find errors than to point it at EDIG and ask WTF are they doing. The answer is nothing in my opinion.

There’s that ‘nothing’ word again. If sitting on their duffs and keeping their mouths shut is what ultimately enhances shareholder value, then I’m all for it. I don’t know what DM is planning or what management has been told but I accept that I’m not privy to this information. I can wait a few more months to find out - and we WILL find out... February 17, 2010 has a big red circle around it on my calendar, but I fully understand that A LOT can happen between now and then - both good and bad.

Our possibilities of realizing returns on our investment ride on the shoulders of DM, not Fred and RP.

Which was the best news I’d heard in close to seven years (almost two and a half years ago).

If you think I am thin-skinned, you may be correct. Or it may be that I am just P.O.ed at the utter lack of any meaningful information from the company and those on this board who are apologists for it.

It’s high time to get over being P.O.ed. or continuing to think that there’s a damn thing that you or anyone can do about the present situation. I have and it’s been amazingly liberating. I’m not apologizing. Fred and RP have done at least 100 things wrong in the past several years; there’s no doubt about it. I don’t happen to think it was just to spite us though I realize some differ on this point. I don’t really care about that debate. I am just as certain as I can be that there remains an opportunity and a real potential here. HOW it plays out is of no concern to me. THAT is plays out is of keen interest and it will be my FOCUS over the coming months.

- Sinkman

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