About the best penny chart we're tracking this fall. New 52wk high today. Plus profitable

In this report we're examing a penny stock that we don't know to well yet, but is profitable and outperforming. Something somewhat unusual for a stock trading under a quarter. in 2009 over at www.greenbackers.com we made two or three mentions on this stock, mainly pointing out their profitability or press releases. Back in the day however, it was not seeing the strength it's been seeing lately.

Today, they struck a fairly significant deal with Samsung. There had been a fair amount of speculation on this.

E.Digital Announces Cross Licensing and Settlement Agreement With Samsung
Thursday 10/22/2009 8:30 AM ET - Market Wire
Under the terms of the confidential agreement, Samsung obtained a license and release on e.Digital's foreign and domestic patent rights, including the Company's Flash-R(TM) patent portfolio, and e.Digital obtained a license and release on certain Samsung patents. e.Digital also received a one-time licensing fee.



Other recent bullish news.

e.Digital's eVU(TM) Selected by LOT Polish Airlines and Air SeychellesMarketwire(Wed, Sep 30)

Excerpt: "We're pleased our ongoing relationship with Mezzo has resulted in LOT Polish Airlines and Air Seychelles choosing eVU to entertain their passengers," commented Fred Falk, president and CEO of e.Digital. "Our rugged eVU was designed and personalized specifically for the portable IFE industry and features fast and simple menu navigation with an industry leading 20+ hours of continuous video playback from a single battery charge so airline personnel aren't burdened with changing out batteries mid-flight.


The stock really started to gain popularity following the headline below....

Court Rules in Favor of e.DigitalMarketwire(Mon, Sep 14)

Excerpt: the Court dismissed all remaining digEcor claims with prejudice, ordering that digEcor recover no damages or injunctive relief.



Financials:

13-Aug-09 E DIGITAL CORP Files SEC form 10-Q, Quarterly Report

.....we believe we have sufficient capital resources for the next twelve months.


One of the biggest eye catchers when we first discovered EDIG was their highly respectable pe

P/E (ttm): 18.00
EPS (ttm): 0.01

Scottrade's take on their pe: EDIG's PE ratio is below the Audio & Video Equipment industry average and signals that investors are not willing to pay a premium for this stock. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.

Market Comparison P/E
(TTM) P/E (Forward
12 Months) PEG 1 Year EPS
Growth Rate 5 Year EPS
Growth Rate
EDIG
E.digital Corp 19.3x -- -- +240.81% --
Audio & Video Equipment
Industry 44.8x -70.5x 2.4x -11.29% +3.26%
Consumer Cyclical
Sector 24.7x 29.8x 2.2x -18.03% +9.51%
S&P 500 21.8x 19.2x 3.8x +1.88% +17.83%



Balance sheet not real impressive, in terms of Book value, but at least very little debt.
Balance Sheet
Total Cash (mrq): 3.07M
Total Cash Per Share (mrq): 0.011
Total Debt (mrq): 241.11K
Total Debt/Equity (mrq): N/A
Current Ratio (mrq): 3.906
Book Value Per Share (mrq): 0.008


Technicals:


One yahoo thread points out: YEAR HIGH/RESISTANCE RECENTLY BROKEN
It did hit it's 52wk high this morning

Other:

Yahoo Thread of interest:

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_E/threadview?m=tm&bn=36498&tid=877&mid=877&tof=8&frt=2

big week ahead, breakout above .30 imminent.
18-Oct-09 11:57 am


technically, stock recently broke 2 year high, which is extremely bullish and imo stock is moving for good reasons
after breaking through 2 year high, stock took a healthy breather and will continue much higher this week and breakout above .30 to around .35, to $2.00 by eoy imo
big things are developing and revenue projections are about to rise 20 fold imo
aggressive strong buy here under .30
load up now, we have a PTSC repeat here!


Bottom Line: Could be onto something here.....Like the trend / ability to outperform the mkts the last 2 to 3 months. News hasn't been bad either......In addition they are sporting a highly competitive pe at 18. Look for some near term basing around .18-.20. Like for taking out it's 52wk high of .22 with a little patience.....target .24 initially...