Zedi Inc ZEDIF

RE: Conf Call

[cerebus]

Personally I don't like the option expense. Actually it is based on the Black Scholes model which is a statiscal theory for pricing options. The one thing to remember is that the expense occurs when the options are issued and not exercised. If the options expire then the expense will never be realized. I prefer to look at cash flow versus earnings to see how a Company is really doing. I remember when Telus got hammered by the analysts when their earnings were poor (asset write downs) and the SP dropped to $6. Some positives in the current report (YTD): Cash flow: $3.8M Working capital: 18.6M Working capital ratio: 4.2 : 1 The company is heading in the right direction and if they can manage there expenses the SP should go up from here. There are a couple negatives to the Company to consider: Shares issued: 100M + BV per share: $0.39 / share which results in a large goodwill factor. Good luck to all