RE: Herd Mentality Afterhour. You have a certain style of investing and I have a certain style of investing. It sounds like your style wouldn't work for me and mine wouldn't work for you. It doesn't mean either is wrong as long as we both sleep well at night and we meet our investment objectives. I'm extremly happy with my rate of return over the last 8 years since I've begun handling my own investments. I've doubled my money every 4 years.
In addition to regular information like financials, I take a great deal more time to research and focus on the quality of the Directors and Management of company and look at their track record of success before putting this kind of money into a company. Past history of people is the best predictor of the future. Successful people are more likely to continue to be successful and and be around other successful people, while people that fail are more likely to hire failures and continue failing. The Directors in this company rarely if ever lose! They are winners. That is why I am so heavily invested in WED
My average cost is $3.40 share, the same as when $16 Million was raised in a private placement using Directors money. I have no fear what so ever of losing my capital because I know for a fact that Directors like Mr. D and Mr. T are prudent successful investors that are acutally risk averse. They wouldn't be throwing good money after bad. I know that eventually this will be a success it is just a matter of what level and when. I have the investment timeline and patience to wait and I think it is too risky to be on the sidelines. The integrity of the Directors suggests that the joint venture will be signed and announced so quickly that you won't see it coming. It is just going to be announced and happen one day.
If I would have used the the money as you suggest and try and play other stocks, that I don't know as well, I feel less confident about the people and I have much more risk in losing my capital. I also won't sleep as well at night.
Further, think about how you would feel if you'd invested all that WED cash you talk about, in a GIC and then watch WED go up to $7/share? You'd be second guessing yourself all the way up and buying in at a much higher share price to catch the ride.
That would be the herd mentality thing!
ARRHW