EDIG
E Digital Corp.
stock OTC

One guy in my office starting buying this penny tech stock called E-Digital (EDIG) for about 50 cents a share. It went up and up, until the point it became marginable, so he used that to buy even more. Eventually, he was up about 200K (like half a million today) on an initial investment of about 10K. I remember the stock had reached about $25 a share and having a conversation with him about when he was planning to take profits. I did some napkin math and the company was valued at some astronomical amount yet all they had was some sort of a software patent and no real revenues. I told him he should sell half and let the rest run if he really believed in the company. He said he agreed but he was waiting until the stock hit $30 which he was certain it was going to do. It never did and crashed even more quickly than it had gone up a few days later. He lost everything including his initial investment.

One guy in my office starting buying this penny tech stock called E-Digital (EDIG) for about 50 cents a share. It went up and up, until the point it became marginable, so he used that to buy even more. Eventually, he was up about 200K (like half a million today) on an initial investment of about 10K. I remember the stock had reached about $25 a share and having a conversation with him about when he was planning to take profits. I did some napkin math and the company was valued at some astronomical amount yet all they had was some sort of a software patent and no real revenues. I told him he should sell half and let the rest run if he really believed in the company. He said he agreed but he was waiting until the stock hit $30 which he was certain it was going to do. It never did and crashed even more quickly than it had gone up a few days later. He lost everything including his initial investment.