Wave Systems Corp. (fka WAVXQ)

[aleajactaest]

New Wave nails it.

"With VSC 2.0 Wave now has a fully automated and remotely managed TPM based authentication solution, but after eleven months AXA has been the only major enterprise to deploy - only on a peicemeal basis. Solms has said Wave VSC has won the technical competition for two other large European enterprises, but actually winning the business is key."

New Wave thinks the blockage is the sense of Wave as a viable enterprise. Wave's balance sheet is too weak. No one wants to depend on an enterprise which is on death's door.

You can't resolve this issue via the income statement. That path is blocked via the demand-side rationale.

The only viable solution to this problem - if true and Wave wants to remain independent - is a large scale financing round. I've argued for this since the price was $24 around 2002. No one ever wants to swallow the medicine, but how many insufficient financings have investors experienced since then at lower and lower prices.

If Wave keeps on with the piecemeal approach, it is likely to be worse for investors. Nothing happens when they raise enough for one quarter's operation. They have to leap the going concern bar.