Does anyone besides me find it strange Bill Solms chose not to disclose this new shelf registration at the Q3 CC earlier this month?
Does anyone think that indicates a bit of sneakiness on Wave's part?--shades of past leadership. Rather than mention it at the Q3 CC, when there could have been explanation and discussion, shareholders were Pearl Harbored, once again.
It sure seems to me Wave is using the tactics of the past leadership. If it was known a few days ago, why not mention it? Why not explain it and justify the need for more dilution, after the new CEO said he didn't think we'd need it?
Here's my speculation: I think Solms was afraid the dreary Q3 results of $4.3M in revenue, if they'd combined it with the announcement of a new shelf registration might have been fatal to the share price and would have triggered a new de-listing warning--a barbed trident spear shot right into Wave's heart.
I am willing to bet Wave will not hit cash flow break-even by the end of the year, which is less than six weeks away and is chock full of holidays. If my prediction comes true, it will deal a serious blow to Bill Solms already somewhat tarnished reputation and push him more and more into resembling the disassembler he replaced.
My personal opinion is he is being forced into this desperate corner by the failure of Wave's products to sell at all--not counting the mysterious pilots and 'modest' defense interest raising little, if any real revenue.
After watching Solms for a year, I see no more sales results under him, than with the former CEO. I think many will have their fingers on the sell-triggers, if the year ends with no significant sales and no signs of the turnaround he said we'd see. Tempus fugit.
Wave has been on borrowed time for years. The new shelf registration is such a familiar negative of times gone by, along with more promises not kept from the new CEO. Solms stated in no uncertain terms he didn't think more financing would be needed after the $10M placement.
It looks like desperation is not only turning the screw tighter, but also may be the driving force inside Wave.
Elsewhere, I see the reaction to a new $15M shelf is being greeted as a positive, or hardly a negative. Some are speculating the shelf money will be needed to handle all the new business coming Wave's way. Sound familiar? Was any of the dilution of the past used to finance a ton of business landing in Wave's lap?
Things under Solms are beginning to smell a bit fishy to me and as time goes by with no change, that smell is getting stronger.
IMO, Wave is in serious trouble. I can come up with no plausible reasons for what is going on--and the sneakiness aspect of this surprise shelf is baffling. Again, I ask, would a rational guy with a good prior reputation go down this road if he didn't have to?
I think Solms is out of options and he has been left with little choice other than handle things in this distasteful way--knowing the history of Wave. Glad I am completely out.
Blue
