I reiterate, based on my previous analyses, that a $3.00 purchase would be a godsend to E.Digital looking at the company today.

During the negotiation with Samsung, DM should have suggested that an equitable offer of $2.50-$3.00 per share would have provided them an opportunity to guide the market as to the use of the edig patents and/or initiate structured settlements with those currently identified as infringers.

At a buy out of $3.00, based on about 290 million shares, the total dollar value would equal approximately 870 million dollars.

EDIG management has commented that the total estimated dollars to be derived from the 170+ identified infringers could amount to hundreds of millions of dollars. We don’t know if that represents the total dollars or the percent share that edig will receive from the settlements and any future royalty type agreements.

Is this a fair amount? It must satisfy the return on investment criteria of any prospective suitor and use present value against future funds flow.

If you project the funds flow over the next three years based on settlements with the remaining infringers, and compute the amount of additional profit from new product sales to equal the return criteria, then an estimate of the success probability can be formulated.

The other side of the equation is to utilize the income from the settlements to develop and market new products, formulate partnership, and pursue an acquisition program.

Successful implementation of these strategies with continued profit growth may produce an EPS of $.10 with year to year increases to $.25, $.50, and perhaps more. This would induce positive investment opportunity from the market and the result may be a share price of $1.50 to $5.00 or higher over the next five years. Of course if the buying becomes extremely emotional anytime during the successful events, then the price could spike to a greater amount and then settle back to market evaluation techniques.

All I ask is that you put the pencil to the data over the next few years and ask yourself how much you would pay and expect in return or compute the share price based on investment fundamentals and our expected profits from operations, considering settlements and new opportunities.

What is the company worth?