Bob,
No... I am definitely a "buy and hold" style investor. I am not a trader. There are people out there that do that for a living and are VERY good at it. I don't want to "play" against them.
I have been an EDIG shareholder for several years, from well back into the NCII days. I have voted on several proxies.
And I am still "a long" technically since I still hold some e.Digital shares.
But even as a buy and hold investor I must sell eventually to realize my profits. AND I must stick to my guns considering my strategy for investment.
Simply, EDIG crossed the line in my strategy from a "hold" to a "sell" based on the criteria that I use in deciding how to manage this part of my portfolio (speculative).
Some of the reasons
1. EDIG had a 2.5 BILLION dollar market cap. It still has a $1.25B cap.
2. EDIG has been faithfully unprofitable for many many quarters in spite of constant news of licensing deals, OEM relationships, and even relationships with bigshot companies.
3. EDIG has accumulated SIGNIFICANT debt in the double digit MILLIONS of dollars.
4. Insider selling has always been a little heavy looking to me, and has recently increased.
These are concrete reasons based on PAST performance. Before you start going on about "Stock prices are based on future potential..." (which is only partially true) let me get started on my speculation for some of the future related (potential) problems.
A. Yes, there is a licensing deal with Maycom. But I have done some DD, and this company is widely considered to make some of the worst products available in this category. They dont have a bad reputation overall, but their compressed audio players have fallen by the wayside in reviews now that several other manufacturers products are available. Perhaps the EDIG based player will redefine thier position and perhaps not...
B. EDIG is up against some BIG badasses in the industry... ever heard of Sony? Not only are they players in electronics with the absolute ability to compete with EDIGs, multi-format Micro-OS, but they are also deeply involved in the music industry.
C. The MPEG audio format is racing along at light speed. In the end it (and its descendants) will remain the defacto standard for compressed audio.
These are just *some* of my reasons for my decision.
I am very confidant with my position and enjoy arguing my side. There is a lot of "good feelin" on this list and a lot of childish bashing... but not enough educated, mature discussion on the negative side. I admit I like filling this gap... at least i think thats part of what I do. ;)
So from my perspective, Bob, it is you not I that cannot see the forest for the trees. So to use an old cliche, I spose we gotta agree to disagree.
And as I have said before: I hope you are right and I am wrong, cause then both of us have made a killing.
I just am betting that I am right. Haha.
warm regards,
cAPSLOCK
BTW: Thanks for "feeling sorry for me" I guess... but no need. I am a big boy. And even if I miss on the big EDIG move I am currently making much more money in the market than with my profession. Heh... as a professional musician I guess that's not all that amazing. |
