Sunday, February 8, 2009

Emotions and IDAE

We just ended the week strong after enduring some tough weeks. This definitely leads to mixed emotions.
Everyone in the investment industry is effected by emotions. Whether its the investor who jumps in or worries about a position due to hype or stock price, or the others who have to deal with the investors calls. Thats why people who work this industry tend to be stressed to the max and some careers are short. Its easy as a professional to stay emotionless when its just you, but it rarely is.

I hear it all the time "I lost $10K", "I have very little left". Well, this isnt really true. You havent "lost" a dime till you sell for a loss. Plain and simple. Some people just cant see past that.

Emotions are natural, but being led by emotions shouldnt be. When you make decisions in this industry based on emotions, you can quickly get burned.

Now lets apply this to our IdeaEdge investment.

Most of you made your initial decision to go long with IDAE based on hard facts a great Vision and a fantastic management team, others made it based on trust. Either way, knowing that the company is actually doing better, and shares are not hitting the market in mass dilution, why would that change because of the share price?

Sure its taking longer than hoped for, but we have to remember the general markets barely avoided a 1929 collapse and in may ways this breakdown was worse. Lost jobs are piling up and people are scared. Its hard finding mom and pop buyers right now. Yet for the most part (aside from maybe 4 or 5 major holders) IDAE share holders have stayed faithful. If half the float would have hit market we would be at a penny right now scratching our heads.

Okay , I can admit its disappointing for some, because like me your thinking, "I wish I was in a better position to buy more" or some of you may even think. "this would have been a much better starting point". Thats right, but whose to say if the opportunity presented itself today that you wouldnt have your money tied up elsewhere?

Fact is, a company like this rarely shows up at these levels. This truly is a very unique opportunity. That is why you have industry people in this that NEVER bring their friends and family into small caps, that have recommended IDAE to everyone they know. Did they recommend it on emotion? No.
Their recommendation was based on the vision and merit of those involved.

Be patient, look at the numbers, and know 2000% from here is very obtainable on paper, but I think all of us would be thrilled with 1000%.

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