More Online and published Talk

Quite a lot is being said about Bill My Parents. Just by googling "Bill My Parents" you will come up with thousands of hits now. Good and bad people are talking....but they are talking.

Here was another print/ Online article regarding BMP that the writer weighs both sides of what his paper has been hearing. From the Joplin Globe:

Published May 27, 2009 06:47 pm - A new Web site is aimed at capturing some of the $40 billion that American teens and tweens annually spend on purchases that they research online but purchase offline because they don’t have credit cards to complete the online transaction.

Mat Anderson: You can just "Bill My Parents"

In case your teen hasn’t already brought it to your attention, a new Web site called BillMyParents.com has just launched.

It is aimed at capturing some of the $40 billion that American teens and tweens annually spend on purchases that they research online but purchase offline because they don’t have credit cards to complete the online transaction.

BillMyParents.com — the mere name of this site makes some parents uneasy — allows your teen to browse Amazon.com (and soon several other sites), and when he encounters an item he can’t live without, he can click the “BillMyParents” icon and enter a begging message that will likely include phrases such as “Please, please, please,” “I really need this because …” and “If you buy this for me I will …”

From there an e-mail will be sent directly to you allowing you to review the item(s) that your teen desires, leaving you to choose to either deny the request or complete the transaction by entering your credit-card information.

Like any new technological innovation, especially one that concerns young people and money, this new site has received both high praise and sharp criticism. Supporters of this site point out that it is a great tool for parents, as it allows them the final say on what their teen spends money on, and it also provides more security than letting teens borrow a parent’s credit card for purchases. Additionally, because the site utilizes Amazon.com, teens can be encouraged toward thriftiness by shopping around for the lowest price on an item. In many cases, teens may even opt to buy a used item rather than a new one.

However, there are drawbacks to the use of this site. While allowing teens and tweens to shop online in this way does streamline the process of buying things for your kids, the purely digital nature of it diminishes the ability for parents to use each of their child’s requests to sit down and talk about responsible shopping, spending and saving.

Additionally, this system does nothing to show young people how the real world works. I think there is a lot to be said for a young person saving her money to buy something she wants and then going through the actual process of handing over cash in exchange for the item. With the BillMyParents system, young people are excluded from the actual transaction and getting what they desire is reduced to a few mouse clicks and a pleading e-mail to Mom or Dad.

This absence of classic financial transactions in the lives of our youth is also a major contributor to rampant teen credit-card debt in our country. Many young people — and adults — don’t understand the consequences of their decisions and merely think of how easy it is to swipe a plastic card or enter some numbers on a Web site to get what they want. Unfortunately, it is this same culture of living beyond our means, not properly weighing our wants and needs and pushing the responsibility of footing the bill to someone else that has led to our nation’s current financial predicament.

Nonetheless, I’m not saying that BillMyParents.com is going to lead to the financial ruin of the next generation. I believe that this site will become extremely successful and is a useful way to simplify online shopping for some families.

But when new technology like this is being used by young people, it is important for parents to consider what messages it is sending to their kids and what teachable opportunities may be missed by transforming nagging trips to the mall to an inbox of purchase requests.

SCLW- NEWS Tracking

Monday May 18, 2009 was the launch of Socialwise’s BillMyParents web site. As our press release explains, Socialwise has established BillMyParents as a unique youth payment system on the web (see full text press release by clicking “In The News” to the left). In the coming months, Socialwise will be announcing new products, services, and capabilities for the BillMyParents.

Because Socialwise will be generating a significant amount of news, we have created an online News Coverage Tracking Service for your convenience. This will provide you with a centralized location to find news about BillMyParents and Socialwise.

In fact, since our Monday announcement, BillMyParents has obtained coverage from CNBC, The Wall Street Journal, and Reuters, among others. Please click on this link to see that coverage:

News Coverage Tracking Service Link

This site will be updated automatically each day, and I invite you to bookmark this site and check it frequently for new content

Revised look at BMP - Bill My Parents

Bill My Parents- New Investor Media link

I have to tell you the first time I heard the idea back in June, IDAE was pursuing its other business plan simultaneously called Bill My Parents, I knew it was a home run. Jim Collas calls Teen, Tween credit/debit cards and payment systems the next frontier, just like cell phones for kids 10 years ago, and I must agree.

Like one financial guru once said "If you want to be extremely wealthy, all you need to do is find out where everyone is heading and get their first" IDAE is doing just that, putting themselves in a position to be first to market with a viable teen payment system.

Currently, Socialwise has focused the majority of their resources to Bill My Parents (BMP) because the management believes the BMP platform has a higher ceiling and marketability.

With a little research, its easy to see why.

Whats Bill My Parents?
BMP simply will allow a parent(s) to verify and approve/ disapprove a transaction of an item their kid(s) have requested. The next phase will include a debit card for kids that gives parents an enormous amount of control, and keeps it simple and convenient.

The first priority will be building an online store using a top retailer like Amazon to sell top selling products and offering the BMP platform as a payment option. This is perfect, since they will not need to try and find top sellers, or stock items, just use the retailer to promote their BMP product! Then BMP will get a cut of the sale, around 10%.


Lets break down the market.

First off parents are far more likely to buy non essential items for their kids then themselves, even if it means sacrificing their own desires. This is true even in a down market.

Lets look at one area of focus for the BMP product: video games, a multi, multi billion dollar industry.

Think about marketing a video game. Currently the video game companies need to try to target a small group in their advertising approach. Generally they cannot advertise to parents, since parents really dont always know which games their kids like. So what they stick with is marketing to late teens to early thirties to capture the market that will respond to the ad and have money to buy the product. This is their main market. Of course younger groups will see an advertisement and bug their parents till their parents buy it for them, but this is only a bonus.

You must note, some of these games, and gaming systems will sell out in hours or days. We are talking MILLIONS of copies at $30-$60 each (not including gaming systems and controllers which can easily hit $400 or more)

So what if a gaming company could advertise directly to the 10-18 yr. old group? Basically BMP solves this problem for every company in this situation. They can market right to the younger kids and advertise "Buy this now with BMP". With the excitement about this market, IDAE has secured lots of discounted ads. This is a nice first step.

Now lets put this into revenue terms, since really thats all we care about.

From the numbers that have been thrown out there, the big target for payment systems is 3 Million users. This is using other companies who have been acquired. With the BMP application alone, this could translate into about $900,000,000 in acquisition value alone, or better yet $18+ per share. (this does not include Ideaedge's social gifting platform only BMP)

How realistic is 3MM users?

With the marketing plan using the social networking platform, typically a “hot” application can reach over a million users in days. With the top applications reaching tens of millions in weeks. I think 3MM users through social networking and other ads in a reasonable time is VERY realistic. In fact, as great as this application is, I believe 3 Million is a very small number to the overall market. These are not hopeful numbers, but very realistic.

Now the other part of the BMP plan.

Bill my Parents Debit card:

Personally I think this is the golden Egg. The crème de la crème of the youth payment systems. A way to give your kid money, without giving them your card (Got your attention now?) Imagine loading your kids card with $200 and being able to:

- block undesirable merchants

- specify a safe merchant list that they can use,

- limit amounts at any merchant,

- monitor the card

- …oh and FREEZE (or unfreeze) the account at anytime with a simple text message or email. (When your kid gets grounded, why should they have the ability to spend money?)

Now add being able to simply add amounts to the debit card and parents have full control. These cards can be used anywhere MasterCard is used. Imagine the possibilities. I think this is where the company is headed for the long term. This in fact is a viable payment system for young people.

As far as numbers and profit, The market figures value at $1000 per user is reasonable for payment systems. So this means in terms of acquisition, 1MM debit card users would value that part of the business at 1 Billion. As far as profit, I haven’t been able to find any solid numbers, but you figure someone charging $1000 a year on average would be reasonable. (Note: this can be used for all a child’s purchases over a year, from school clothes and supplies, to gifts for friends and family). Credit card companies charge merchants anywhere from 1.5%-3%+ for transactions, so I would think realistic revenue from that would be anywhere from 0.5%-1%.

5 Million users = $250,000,000 - $500,000,000

10 Million users = $500,000,000- $1 Billion

I don’t see why the profit wouldn’t be at least 20% maybe higher given the outsourcing that Socialwise has (I think they are figuring at least that). If thats the case we are talking profit in the $50MM to $200MM plus range.

Compare just this one small part (the Debit card) of Socialwise to "Heartland Payment Systems"

Heartland does 85MM in EBITDA and still holds a market cap of over $300MM! (thats after a 50% decline in the last 8 weeks.)

Alone if the Socialwise Debit card achieved the numbers above and translated into a value of 350MM in market cap, that would spell out over $7 a share.

Are you beginning to see the big picture?

Now add that to the BMP platform (not to mention social gifting) and the numbers are staggering. This is a legitimate multi billion dollar company.

I think what is really exciting is this is just one business plan of IdeaEdge's that they are executing, and does not include social gifting which I already hit on earlier. Combined there is no reason in my mind they wont be able to rival a payment system such as Paypal.

Feel free to comment and ask questions.

Check out the site
Bill my Parents

Small Caps are the next move

Great time to be in the small cap market. Many will be looking for a place to put their money. I believe IDAE will benefit from the timing.

This Motley Fool article just proves my point:

"Look, I'm a firm believer that large caps should be at the foundation of every equity portfolio. But if you're like me -- you have a long-term time horizon (15-plus years), and capital appreciation is your primary investment objective -- you need small-cap stocks. There are no two ways about it.

What's more, small caps tend to outperform large caps by a wide margin after a market bottom. In a down market like this, it pays to give small caps more attention. Once the market recovers, you'll be glad you did."

For starters, unless you've made a concentrated effort to gain small-cap exposure in your portfolio, you may well be under allocated in this asset class. And that's a mistake: Small-cap stocks give investors the best chance at outperforming the market over the long haul. NYU professor Aswath Damodaran found that from 1927 to 2001, the smallest companies outperformed the largest ones with a 20% annual return versus 12% on a value-weighted basis. Many of the most successful small caps were:

• Underfollowed on Wall Street.
• Led by dedicated founders.
• Financially strong.
• Well-managed.
• Dominant in their market niche.

These were traits shared by the likes of Dell (Nasdaq: DELL) and Southwest Airlines (NYSE: LUV) early on, and they turned out to be some of the best stocks of our generation. Fifteen years from now, it's very possible that we'll look back at some of today's small caps and wonder how we missed those massive opportunities."

To read the full article go here:"Buy a small cap Stock"

Social networking and Gift Cards- Exciting Possible revenue

Targeting the Gift Card market was the original business plan for IdeaEdge (Socialwise) by "group gifting" using "social networking". This adds a whole new way of marketing and selling gift cards by using one of the most popular new forms of communication (Social networking).

Although I will explain in more detail, If you dont understand any part of this concept, please see the investor media from IdeaEdge. Jim Collas does a better job of laying it out.

The Social gifting business plan was before "Bill My Parents" (if you havent read that blog, its a must.) and is the basis of the company originally going public. "Bill My Parents"was originally a back up plan (imagine that?) mainly to solve a problem with group gifting (how to target teens).

Fortunately here we are today with two viable business plans that will all but guarantee IdeaEdge (Socialwise) success.

Gift cards are a HUGE and growing business. In fact, majority of all gifts given today are gift cards. They are more personal and safer than cash, and guarantee you wont screw up a birthday/wedding Etc. too bad.

This is where IDAE comes in.
IdeaEdge's platform allows people on social networks such as Facebook to donate toward a gift card of the recipients choice. This is done using a group gift concept (although it can still be individual). The gift card of choice (lets say "Gap clothing store") can be requested by the recipient or one of their friends or family (average user has 120 friends).

To hopefully help you understand I'll use an example:

Say its my birthday and I decide I want a Gap gift card. First I pick IDAE's application (Called the "Group Gift card") on my Facebook page, sign up, and request from my friends that they donate to the Gap card(Basically it tells them I want a Gap card for my birthday). Lets say you are one of my friends on Facebook. As one of my friends, your own Facebook home page tells you its my B-day, and encourages you to give to me using the Socialwise (IdeaEdge) application.

This simplifies the process of gift cards. Just think, even if my friends knew I wanted a Gap gift card, they would normally still have to go out and buy one. Then I get stuck with several Gap gift cards with various amounts. With Group Gifting it is all on one card that everyone donates too. What is even better is generally someone would be embarrassed to give a $5 gift card, but in a group setting on social networking it would no longer be viewed as cheap. In this climate being able to give $5 instead of giving more than you can afford (or nothing at all) is a real bonus.

Now, instead of 1 person giving me a $100 Gap gift card 20 people can give $5 and I still get a $100 Gap gift card or another of my (or someone else) choice! (amounts will vary on how many people give and at what amount).

Now some of you remember the launch of the "Gimme" application ( now "Group Gift") on Facebook that I mentioned earlier. What you need to understand is that application is only used as a "showcase" by the Socialwise to show the product to application such as Rock you (biggest application maker on all social networking sites) whom they have contracted with. Its kind of like how Sony usually sells its products through big companies such as Best Buy, Target, Wal-mart etc. but yet they have a few of their own Sony stores. As its not Sony's main business to be a retailer, it is not Socialwise plan to be one either.

IDAE then would receive around $10-$12 of the sale of that $100 gift card.
Best yet Socialwise (IdeaEdge) collects the proceeds, so no worries of companies not paying or trying to renegotiate.

But really thats not the plan, It gets much better...

On Facebook/Myspace (Joe Abrams former company) you can choose what applications you want to load on your homepage to personalize your experience. The best applications become the most popular ones. So rather than try to make 1 application to compete to use on Facebook, Myspace, Etc, IdeaEdge has decided to wholesale out the group gifting idea and split it with the top application makers. Not only does this eliminate IdeaEdges workload (building applications) but it puts that role of application design and ideas into the application makers (experts) hands. Now instead of having one application on Facebook with the group gifting platform, you have 20, 30, maybe more, all competing for the same audience, with IDAE getting a half of all of others efforts.
So how would an application work? It really depends on the idea, but one idea I heard was designing a "group Birthday card" that everyone "digitally signs" and writes in that includes a gift card. If you want to be a part of the birthday card, you would need to donate to the gift card. Thats just one idea, application makers are pretty amazing at coming up with unique ways to market.
A popular application will almost always have more than 4MM users (birthday calender has nearly triple that). So even if only one or two (of say 20-30) of the applications become popular, we still should easily see an audience of over 10,000,000 active users. What makes this unique is ALL application makers are very interested since all of them are trying to monetize social gifting. Nobody has monetized social gifting yet.

IdeaEdge is going to be the first company with a viable way to monetize group gifting...(read that again). Yes the first. Most of you probably dont even understand how big that is. It is huge. Remember back when search engines like Google were trying to figure out how to make money by indexing the internet? Once they did, it became a multi Billion Dollar industry. Same type of thing here.

If you understanding this business plan you should, right now, be extremely thrilled.

Now we need to look at some hard numbers on what IDAE can expect.

But before I get to that, let me give you the first important 2 numbers I want to talk about: 150MM+ users....this is how many people currently use social networking! Thats a pretty big audience. Companies pay billions to get in front of a target audience like that.

Now lets look at the next number: Gift cards are currently a $120Billion+(2006) annual industry.

How can IDAE (Socialwise) tap into this market in a realistic, not some "pie in the sky" way?

To answer this, First lets look at the competition and what they have done:

Blackhawk Network launched in 2002, and currently they are the number 1 in the gift card business. By their 4th year they had made $50MM in profit. The next year $90+MM. This is profit, not revenue. I have not seen revenue numbers, but typically profit is around 10-15% for a big company with thousands of employees like Blackhawk Network has. Even at 20% profit, that represents $250MM in revenue in their 4th year alone. At 10% profit that is 1/2 of a billion in revenue, which is far more likely than 20%. So in 4 short years in business, Blackhawk had captured $250MM-$500MM in revenue in an industry that is up 50% since they launched. Maybe you havent noticed, but gift cards are everywhere.

How did they do it? The right contracts and connections. If you look at Ideaedges connections and contracts, you can see they are positioning themselves much the same way (with Myspace and Facebook and aligning themselves with other big companies). These contracts for Blackhawk turned into a pretty good audience by their 2nd year. Their product was in front of millions by being at Safeway grocery stores checkout counter (I believe Safeway now owns Blackhawk). Instantly you had millions of possible customers walking by your product. Since then they have branched out into other stores.

Still their potential audience was no where near the 150,000,000 Socialwise will have from day 1! The one catch will be that although they have 150MM potential clients, the product will be somewhat hidden until those people hear about it. It would be like Blackhawk only having their gift cards at 1 checkout counter in Safeway. However whenever someone bought a gift card, Safeway announced it over the loudspeaker the gift cards location (essentially what Facebook and Myspace do).
Also note: people spend far more time on social networking per month than at a checkout counter at the store.

Whats more exciting is that IdeaEdge (Socialwise) profit will be double if not triple that of Blackhawk. Why? IDAE's super low overhead. Blackhawk needs thousands in employees to do what Socialwise (IDAE) can do with less than 20! Jim Collas believes the company can do nearly $1 Billion in revenue with just over 10 employees. There is no product to store, no employees to work where houses and setup, no applications to be programed. Very little will be done in house.

Now that we have looked at the industry, now lets get into realistic revenue that IDAE expects.

By 4th quarter 2009 (when the company should be producing revenue as per their plan) there will be 40,000,000 DAILY birthday alerts on social networking.

If IDAE captures a very realistic 1% (400K) of that daily market at an average of $7.50 per person ($5 - $50 is the range for gifting).

Revenue to IdeaEdge will be $161,000,000.

Is that realistic?
Consider that the revenue will (hopefully) be split between 20+ applications, or only 20K people per application. Again let me point out that the TOP birthday applications get 4,000,000+ daily users!

So, yes, not only is it possible, its pretty low end.

Using that line of thinking lets get more technical. Lets say that between all applications they were able to get 15MM monthly users (again very reasonable, The very top applications usually get this many each) that contribute (on average) $7.50 to a birthday/anniversary/wedding etc. per month.

Thats a cool $198,000,000 in annual revenue.

This is VERY realistic because whenever someone on Facebook or Myspace adds a application it will notify all of their friends that they joined that application (the average person has 120 friends). If they like it, they can also invite friends to try it. See how quickly this can grow?

Now the real question.

What does this mean for the stock?

Two fold:

First)
Once IDAE (OTCBB:IDAE) starts showing revenue like this, they will attract quite the attention from the (Wall) Street. Typically a companies stock will trade 10-100 times its profit. In bad times its lower, and good, its higher. Right now these markets have slammed companies and pushed some good companies below 50 times profit,Example: Amazon is trading at approx. 30 times profit. Many companies make 0 profit, or even losses, and they are still trading, so investors look for companies that have high profit margin or stability and rewards them (Amazon does not have a very high profit margin).
Since Amazon is a internet company that supplies products, let me compare it to IDAE's sector.

So lets be VERY generous and say IDAE trades for only 5 times its profit. (This is low since investors will pay a premium for a start up company that is making 25%+ profit margins like IDAE should.) A fair number would even be 10 to 15 times...but I want to under sell my point....

So at $200MM in revenue, IdeaEdge should clear over $50MM in profit.

$50MM profit times 5 = a $250MM market cap.

$250MM market cap divided by 45 Million shares = over $5.50 per share! Or 14 times your money from these levels!

Again these are "dumbed down" numbers, I actually think the numbers will come in MUCH higher.

You might be thinking "But couldnt that take years to earn that profit?"

Yes, but do you think 10-15 times your money in a few years is bad?

We are talking "tech boom" type numbers. You think another investment will do that? What others? Real estate? GM's, Siruis or AIG's stock if they rebound...even another small cap? Good luck. I like the chances here (seeing what IDAE has already accomplished)

That being said, markets move down here(on OTCBB) on anticipation alone! Just the anticipation of the idea that IDAE will do $50MM in profit the next couple years can drive the price sky high! So $5 a share could be realistic in the shorter term as well.

What you need to consider is that these numbers are assuming "Bill My Parents (BMP)" FLOPS!

As I said before, I think BMP is MUCH bigger and better than group gifting (and so does IdeaEdges management as well as just about everyone who has seen both plans)

Take the low end of BOTH of these plans, "Bill My Parents"and group Gifting and realistically on the low end we are talking about a $7+ stock.

The high end being in the $40's. I actually dont think thats unrealistic if the company hits its goals. Thats a $1000 return for every $1 invested from the bottom levels! In that case does it really matter if it takes 5 years?

Now back to earth:
The Second way to get your Return on Investment- ROI)
An acquisition. Being that Joe Abrams AND Maynard Webb are very good M and A's (mergers and acquisitions) specialists, I think this is a far more likely scenario. Also keep in mind, great ideas like this rarely ever make it to market anymore. A big company is far more likely to pay top dollar to acquire a company like IDAE than let a competitor get it. Especially if there is a bidding war. I have no doubt that companies are going to be salivating over "Bill My Parents".

Payment systems alone are a hot ticket, with "Bill me Later" being sold in November for approx $940MM and Paypal selling for 1.8 Billion in 2002, both in down markets! The key with these was not revenue, but the number of users they had. (Bill me Later had only 3MM users).

Maynard Webb, who was the COO of Ebay at the time of the Paypal purchase has openly said he thinks IDAE has a better plan and service!

Not to mention that IDAE has two plans, not just one. That means one could be bought out, leaving us with a dividend check of say $5 per share and we still keep the stock!

I personally think a buy out is very likely, and that would happen quickly once they start building clients. Main thing will be to get the platforms out and get users on board. This could happen quickly (in a few months) or it could take a few years. Company plans on being profitable this year, and April/May will be big months to see how they hit their goals. In the meantime, this stock remains a STEAL!

Hope this helps you understand the company you invested in even more.
Feel free to ask any questions.

Shareholder Meeting

Great end to the week. We ended even for several weeks now signaling this is probably bottom. I have a feeling we will see a nice move north in the next month or two. Too much going on with the company to not have some outside buying coming in.

I think 50-100% gain from here in the next few weeks or month is very realistic.

I didnt forget, Im just finishing the group gifting post later today.

Shareholder Meeting

2009 Shareholder meeting is just around the corner. If you can make it, I would encourage you to. They will be discussing several items.

The Shareholder meeting will be held at the Corporate Offices of Socialwise/IdeaEdge.

Where: 6440 Lusk Blvd, San Diego, Ca 92121

When: Friday, March 20th, 2009

Time: 10 AM PST

Host: CEO Jim Collas

Updated Investor Media by CEO

Excellent new "investor media" as outlined by last weeks PR. Done by CEO Jim Collas. Basically its the companies breakdown of the next 9-12 months, as well as where they are now.

I think you'll be impressed, especially being how its done by the CEO
Click here
Investor Media

Week and last few months in review

This week despite heavier volume we were "flat" (broke even). Look at the chart, and you'll notice the seller waits for momentum and sells (this is better than just using a market order to sell it all, but its not helping us breath). A seller is still is in there, but I cant imagine he has much steam left. Buying continues to roll in not seen in months. We should soon see a breakthrough in this resistance. Overall you'll notice it wants to go higher. This is a good sign.

Its been an interesting couple of months to say the least. Unfortunately we were not as sheltered as we hoped from the general meltdown in the markets.

What I want to take a look at and comment on is the overall monthly share volume for IdeaEdge.

We had the biggest month in share volume since July in January. In fact following a monthly volume of only 373,659 shares in November we had two strong (selling) months in Dec and January of over 788K each. Obviously this was mainly sell volume and the results are the current level.
What else is interesting is that while majority of the 6 MM share float is held by investors using either Etrade or UBS (market makers) for the routing of the trades, both of those Brokers only combined for less than 200K of the 1.5+MM shares that traded hands in those two months. In fact if you go back 5 months, majority of the Etrade activity was buying. This tells me that the most of shareholders remain very loyal, and the selling is coming from a small camp. Im guessing its only been less than 10 shareholders overall that has put us here. Shareholders of record is still around 600, so you are talking probably less than 1% of them selling...amazing! (not that its comforting) Unfortunately these are bigger shareholders. You also have to factor in as its being sold off, you will get the poor shareholder that doesnt understand whats going on(that owns positions of say 1000 shares), dumping as well. Thats why I say probably less than 1%.

Now taking the lower share volume into consideration, you can see that without just a few of these sellers, this stock would be sitting over $3 right now despite the current markets!

Like everyone else, the problems with this stock started with the general markets (which effected most of us), add that to several people who got margin called, a otcbb stock with no "earth shattering" news, and your looking at the perfect storm.

Another interesting observation from these numbers is the fact that overall volume dropped significantly (as expected) with the general markets. People just stopped trading small caps in general. IDAE went from over 2MM+ shares monthly at its peak, to only 1/4 that number on average. Some of this was caused by a downward trend of the stock in general. The good news is we did not see a spike in volume associated with short sells Another great sign.

However this remained another major drawback. This meant when the sellers did show up, you had little buying behind them.

Back to the good news:Aside from a seller or two, it remains fairly quiet. Yet we have seen some strong buying backing it up. There has been some strong support as of late, and if the buying continues, the sellers will disappear and the stock will gain momentum. Remember all those traders that jumped on IDAE in the summer? I think theres a few waiting for an upward trend to jump in again.

I still think we see a return to old volume again once we see the Bill my Parents start running and Bite getting involved, with majority of that being buy volume (regardless of the general markets). I can say this because this should coincide with Bite's PR campaign. If you haven't read my blog on Bill My Parents, its a must.

Next week Ill be hitting the Social Gifting side of the business, I think you'll love the numbers and possibilities.

Bill My Parents

Bill My Parents- New Investor Media link

I have to tell you the first time I heard the idea back in June, IDAE was pursuing its other business plan simultaneously called Bill My Parents, I knew it was a home run. Jim Collas calls Teen, Tween credit/debit cards and payment systems the next frontier, just like cell phones for kids 10 years ago, and I must agree.

Like one financial guru once said "If you want to be extremely wealthy, all you need to do is find out where everyone is heading and get their first" IDAE is doing just that, putting themselves in a position to be first to market with a viable teen payment system.

Currently, Socialwise has focused the majority of their resources to Bill My Parents (BMP) because the management believes the BMP platform has a higher ceiling and marketability.

With a little research, its easy to see why.

Whats Bill My Parents?
BMP simply will allow a parent(s) to verify and approve/ disapprove a transaction of an item their kid(s) have requested. The next phase will include a debit card for kids that gives parents an enormous amount of control, and keeps it simple and convenient.

The first priority will be building an online store using a top retailer like Amazon to sell top selling products and offering the BMP platform as a payment option. This is perfect, since they will not need to try and find top sellers, or stock items, just use the retailer to promote their BMP product! Then BMP will get a cut of the sale, around 10%.


Lets break down the market.

First off parents are far more likely to buy non essential items for their kids then themselves, even if it means sacrificing their own desires. This is true even in a down market.

Lets look at one area of focus for the BMP product: video games, a multi billion dollar industry.

Think about marketing a video game. Currently the video game companies need to try to target a small group in their advertising approach. Generally they cannot advertise to parents, since parents really dont always know which games their kids like. So what they stick with is marketing to late teens to early thirties to capture the market that will respond to the ad and have money to buy the product. This is their main market. Of course younger groups will see an advertisement and bug their parents till their parents buy it for them, but this is only a bonus.

You must note, some of these games, and gaming systems will sell out in hours or days. We are talking MILLIONS of copies at $30-$60 each (not including gaming systems and controllers which can easily hit $400 or more)

So what if a gaming company could advertise directly to the 10-18 yr. old group? Basically BMP solves this problem for every company in this situation. They can market right to the younger kids and advertise "Buy this now with BMP". With the excitement about this market, IDAE has secured lots of discounted ads. This is a nice first step.

Now lets put this into revenue terms, since really thats all we care about.

From the numbers that have been thrown out there, the big target for payment systems is 3 Million users. This is using other companies who have been aquired. With the BMP application alone, this could translate into about $900,000,000 in acquisition value alone, or better yet $18+ per share. (this does not include social gifting only BMP)

How realistic is 3MM users?

With the marketing plan using the social networking platform, typically a “hot” application can reach over a million users in days. With the top applications reaching tens of millions in weeks. I think 3MM users through social networking and other ads in a reasonable time is VERY realistic. In fact, as great as this application is, I believe 3 Million is a very small number to the overall market.

Now the other part of the plan.

Bill my Parents Debit card:

Personally I think this is the golden Egg. The crème de la crème of the youth payment systems. A way to give your kid money, without giving them your card (Got your attention now?) Imagine loading your kids card with $200 and being able to:

- block undesirable merchants

- specify a safe merchant list that they can use,

- limit amounts at any merchant,

- monitor the card

- …oh and FREEZE (or unfreeze) the account at anytime with a simple text message or email. (When your kid gets grounded, why should they have the ability to spend money?)

Now add being able to simply add amounts to the debit card and parents have full control. These cards can be used anywhere MasterCard is used. Imagine the possibilities. I think this is where the company is headed for the long term. This in fact is a viable payment system for young people.

As far as numbers and profit, The market figures value at $1000 per user is reasonable for payment systems. So this means in terms of acquisition, 1MM debit card users would value that part of the business at 1 Billion. As far as profit, I haven’t been able to find any solid numbers, but you figure someone charging $1000 a year on average would be reasonable. (Note: this can be used for all a child’s purchases over a year, from school clothes and supplies, to gifts for friends and family). I would think revenue from that would be anywhere from 0.5%-1%.

5 Million users = $250,000,000 - $500,000,000

10 Million users = $500,000,000- $1 Billion

I don’t see why the profit wouldn’t be at least 20% maybe higher given the outsourcing. If thats the case we are talking profit in the $50MM to $200MM plus range.

Compare just this one small part(the Debit card) of Socialwise to "Heartland Payment Systems"

Heartland does 82MM in EBITDA and still holds a market cap of over $350MM! (thats after a 50% decline in the last 3 weeks.) Alone if the Debit card achieved the numbers above and translated into a value of 350MM in market cap, that would spell out over $7 a share.

Are you begining to see the big picture?

Now add that to the BMP platform (not to mention social gifting) and the numbers are staggering. This is a legitimate multi billion dollar company.

I think what is really exciting is this is just one business plan of IdeaEdge's that they are executing, and does not include social gifting which I will hit on later. Combined there is no reason in my mind they wont be able to rival a payment system such as Paypal.

Feel free to comment and ask questions.

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Bill my Parents

Charts and fundementals....Please

I know there are a few of you that are tempted to read charts, because thats what you do. One look at this and I know what your thinking.... dump it, drop it, sell it all....or if your on the short side...grab a large position.

But not so fast. Let me give you some reasons.

Charts and fundamentals are important if your playing mid and Large caps, but really have little bearing on micro and small caps. Sure you can see trends, but what are causing the trends?

First off fundamentals are generally based on a company making revenue...that right there torpedo's most micro and small caps. (yes even Idae/Socialwise)

So again what will cause the trends?

Generally trends down here(in small caps) are caused by:

Hype- the very idea that the company is going to be huge. Can be from a promoter, or company direction and or news.

Fear- Better get in/out now cause I have a feeling Im missing something.

Dilution- If a companies float goes from 10MM to 100MM what do you think the trend will be (hint, its very bad)

and of course:

The day traders/trend readers- Hop aboard this puppy is going up, or short this hard, cause its bleeding red.

So if your a chart reader who goes long, all you can say is "Well I hope this has hit bottom".

I will admit, I dont read charts or look at trends. Im not moved by fear, and stopped believing the merit less hype long ago. I got tired of being that "sucker".

I feel sorry for those of you who are blinded by your technicals, and charts. Blinded by greed or fear, because your missing a company that I believe is one in 1000, if not one in 10,000.

If this was a pump and dump, we would be sub penny right now scratching our heads. If this was a pipe dream of a plan, then names like Amazon, Rock You, and even Apple wouldnt be seriously tied to them.

If this was a typical small cap management team you wouldnt have guys like Abrams and Webb, not to mention Collas linked to it.

What I do see with IdeaEdge is a VERY unique opportunity. There is no needless hype, no dilution of shares, no shady business partners, no pipe dream of a business plan, and not even the hope of a "big score". All around from management to plan, to promotion and execution, IDAE is different.

Even the underwriters are strong...still, after all this time. That should count for something. In fact one told me "I have my whole family in this..." good, so do I, and down here, so should you.

Company news

More great news coming out of the company. Now IDAE wants to start a shareholder communication process led by the CEO. Who does this on a small cap company? This type of communication is extremely positive. Obviously the company know that if it keeps the investors informed, they will be very bullish on the company. This is a great move all around. I continue to be impressed (despite where we sit).

Let me reiterate, the ONLY thing that has changed with the company since the stock was 2.50+ is that they now are much further along with their business plans, launched a platform, have better partners , better management, a big pr firm, and are obviously working with big names. The company continues to grow and hit benchmarks is not being reflected in share price.