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Message: VectorVest Stock Analysis of e.Digital Corp as of 9/22/2009

VectorVest Stock Analysis of e.Digital Corp as of 9/22/2009

posted on Sep 22, 2009 07:01PM
VectorVest Stock Analysis of e.Digital Corp as of 9/22/2009
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Summary Analysis
EDIG is undervalued compared to its Price of $0.16 per share, has below average safety, and is currently rated a Hold.
Graphs
e.Digital Corp
Electronic (Misc Products)
Detailed Analysis
Capital Appreciation
Value: Value is a measure of a stock's current worth. EDIG has a current Value of $0.27 per share. Therefore, it is undervalued compared to its Price of $0.16 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.
RV (Relative Value): RV is an indicator of long-term price appreciation potential. EDIG has an RV of 1.23, which is good on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.
RT (Relative Timing): RT is a fast, smart, accurate indicator of a stock's price trend. EDIG has a Relative Timing rating of 1.78, which is excellent on a scale of 0.00 to 2.00. RT is computed from an analysis of the direction, magnitude, and dynamics of a stock's price movements over one day, one week, one quarter and one year time periods. Once a stock's price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. VectorVest favors the purchase of stocks with RT ratings above 1.00.
VST (VST-Vector): VST is the master indicator for ranking every stock in the VectorVest database. EDIG has a VST rating of 1.35, which is very good on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. VectorVest advocates the purchase of safe, undervalued stocks rising in price.

Recommendation (REC): VectorVest gives a Buy, Sell, Hold recommendation on every stock, every day. EDIG has a Hold recommendation. REC reflects the cumulative effect of all the VectorVest parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. VectorVest recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.

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GRT (Earnings Growth Rate): GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. EDIG has a forecasted Earnings Growth Rate of 9.00%, which VectorVest considers to be good. GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the VectorVest database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. VectorVest favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, as shown weekly in our investment climate report.
EPS (Earnings per Share): EPS stands for leading 12 months Earnings Per Share. EDIG has a forecasted EPS of $0.01 per share. VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.
P/E (Price to Earnings Ratio): P/E is a popular measure of stock valuation which shows the dollars required to buy one dollar of earnings. EDIG has a P/E of 16.00. This ratio may be deemed to be high or low depending upon your frame of reference. The average P/E of all the stocks in the VectorVest database is 120.35. P/E is computed daily using the formula: P/E = Price/EPS.
EY (Earnings Yield): EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. EDIG has an EY of 6.25 percent. This is above the current average of 0.83% for all the stocks in the VectorVest database. EY equals 100 x (EPS/Price).
GPE (Growth to P/E Ratio): GPE is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. EDIG has a GPE rating of 0.57. High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. With long-term interest rates currently at 4.51%, the operative GPE ratio is 0.20. Therefore, EDIG may be considered to be undervalued.
Dividend Information
DIV (Dividend): VectorVest reports annual, regular, cash dividends as indicated by the most recent payments. Special distributions, one-time payments, stock dividends, etc., are not generally included in DIV. EDIG does not pay a dividend.
DY (Dividend Yield): DY reflects dividend per share as a percent of Price. EDIG does not pay a dividend, so it does not have a Dividend Yield rating. . DY equals 100 x (DIV/Price). It is useful to compare DY with EY. If DY is not significantly lower than EY, the dividend payment may be in jeopardy.

DS (Dividend Safety): DS is an indicator of the assurance that regular cash dividends will be declared and paid at current or at higher rates for the foreseeable future. EDIG does not pay a dividend, so it does not have a Dividend Safety rating . Stocks with DS values above 75 typically have RS values well above 1.00 and EY levels that are much higher than DY.

DG (Dividend Growth Rate): Dividend Growth is a subtle yet important indicator of a company's financial performance. It also provides some insight into the board's outlook on the company's ability to increase earnings. EDIG does not pay a dividend, so it does not have a Dividend Growth rating .
YSG (YSG-Vector): YSG is an indicator which combines DIV, DY and DG into a single value, and allows direct comparison of all dividend-paying stocks in the database. EDIG does not pay a dividend, so it does not have a YSG rating . Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for above average current income and long-term growth.
Price-Volume Data
Price: EDIG closed on 9/22/2009 at $0.16 per share
Open: EDIG opened trading at a price of $0.17 per share on 9/22/2009.
High: EDIG traded at a High price of $0.17 per share on 9/22/2009.
Low: EDIG traded at a Low price of $0.16 per share on 9/22/2009
Close: EDIG closed trading at price $0.16 per share on 9/22/2009. (Close is also called Price in the VectorVest system)
Range: Range reflects the difference between the High and Low prices for the day. EDIG traded with a range of $0.01 per share on 9/22/2009.
$Change: EDIG closed up 0.00 from the prior day's closing Price.
%PRC: EDIG's Price changed 3.23% from the prior day's closing price.
Volume: EDIG traded 208,903 shares on 9/22/2009.
AvgVol: AvgVol is the 50 day moving average of daily volume as computed by VectorVest. EDIG has an AvgVol of 226,337 shares traded per day.
%Vol: %Vol reflects the percent change in today's trading volume as compared to the AvgVol. %Vol equals ((Volume - AvgVol) / AvgVol ) * 100. EDIG had a %Vol of -7.70% on 9/22/2009
CI (Comfort Index): CI is an indicator which reflects a stock's ability to resist severe and/or lengthy price declines. EDIG has a CI rating of 0.71, which is poor on a scale of 0.00 to 2.00. CI is quite different from RS in that it is based solely upon a stock's long-term price history. VectorVest advocates the purchase of high CI stocks.
Sales / Market Capitalization Information
Sales: EDIG has annual sales of $10,000,000
Sales Growth: Sales Growth is the Sales Growth Rate in percent over the last 12 months. EDIG has a Sales Growth of 136.00% per year. This is excellent. Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company's operations.
Sales Per Share (SPS): EDIG has annual sales of $0.04 per share. SPS can be used as a measure of valuation when comparing stocks within an Industry Group.
Price to Sales Ratio (P/S): EDIG has a P/S of 4.18. This ratio is also used as a measure of valuation. Here, too, it is useful when comparing stocks within an Industry Group.
Shares: EDIG has 284,000,000 shares of stock outstanding.
Market Capitalization: EDIG has a Market Capitalization of $45,000,000. Market Capitalization is calculated by multiplying price times shares outstanding.
Business: e.Digital Corp, (EDIG) e.Digital Corporation provides engineering services, product reference designs, and technology platforms to customers focusing on the digital video/audio and player/recorder markets. The company provides MicroOS operating system for use in digital voice recorder technology, audio and video storage, and playback and wireless utilities. MicroOS manages the volume and equalizer functions, the LCD drivers and interfaces, decoding various audio and video files, interacting with various digital rights management schemes and supporting a range of media storage formats. It also offers digital video/audio technology platform (DVAP) that accommodates various third party video compression encoded material, proprietary security measures, and enables for other customizable options and is primarily used in travel and leisure, medical, education, government, and military use. e.Digital offers proprietary hardware and software encryption, digital rights management (DRM), key management, and data obscuration technology for content protection. The company also develops wireless solutions. It provides portable video on demand products including its eVU mobile entertainment system; and licenses its MicroOS, content mark-up language application, LDP software, hardware security technologies, DRM solutions, content download applications, encryption and content protection solutions, and video display software applications. In addition, e.Digital provides engineering, designing, and manufacturing services for products employing its digital technology platforms. The company sells its products to digital video device developers and users, electronic product manufacturers, PC manufacturers, and automotive audio/video manufacturers; and markets its services through its strategic and industry relationships. The company was incorporated as Norris Communications Corp. in 1988 and changed its name to e.Digital Corporation 1999. e.Digital is based in San Diego, California.
Business Sector: EDIG has been assigned to the Electronic Business Sector. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.
Industry Group: EDIG has been assigned to the Electronic (Misc Products) Industry Group. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.
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