Money: IMO, it has to do with the psychology of wanting to believe in an idea or stock so fiercely, all contrary indicators are blocked out. In Wave's case, they had some help.
Real Wave indicators have been readily visible, but because of inaccurate interpretations of what those indicators meant, the belief system won out over a long and contradictive history, disproving facts and just plain rationality.
The Wave myth was like a sparkler in the night attracting many moths to its intense light.
Even long after it was clearly evident Wave was not being operated with the welfare of shareholders in mind, rather the welfare of management always came first--even after this was demonstrated repeatedly--some claimed it meant exactly the opposite. They were told this is being done for you--and they believed it.
Wave has taken severe advantage of these believers, IMO, encouraging them with faux deals, phantom profitability promises and a bright, bright future just ahead--a future that recedes out of reach, a little faster each day.
The Wave belief system is so strong, many still believe, even as Wave sinks into quicksand up to its neck, relief will come in the form of a last minute miracle.
Whatever happened to the old-fashion way of making money by selling your products? Unfortunately, Wave never could compete in the security market in which it claimed to be a leader and first mover.
Good sales, good management, a good business plan have all been missing from Wave's history.
Instead, shareholders have had to put up with a series of embarrassing mistakes, revenue re-statements, repeated Nasdaq de-listing threats, one actual de-listing, crippling loans, constant dilution, accounting firm quitting, firing the CEO, the Co. skipping out on the lease in Calif., selling accounts receivables for cash, broken promises and outright lies about Wave's true situation.
And, at one of the most critical moments in Wave's long and inglorious history, shareholders were denied the most basic of numbers--billings--just weeks after the CEO told us to watch billings for true signs of Wave's condition and future.
No information was given prior to the vote on Reverse Split #3--instead shareholders had to vote blindly.
No info on the either the bridge loan with its 100%+ interest due Xmas Eve, or another loan taken, possibly to pay the bridge loan? Important stuff for shareholders. But Wave has gone silent on these issues.
I do not conclude as does another believer, Wave hid the Q3 billings because they were too good to release. Quite the opposite, IMO.
IMO, Wave hid the Q3 billings because they were so awful. Can they get away with hiding Q4 billings too?
If I were a shareholder, I would seek a court writ of mandamus ordering the company to release the information immediately to shareholders--because it is critical info to their investment.
Yet, despite being treated as less valuable than dog dirt, some believers still think all of this is being done for shareholder benefit, and that management still deserves unbending support.
Last year, Solms, with his Militaire Gang of Three, all got bonuses for lying their butts off about deals coming in, profitability in sight, the pipeline filling up--and not an nanogram of truth in any of it.
I can't wait to see just how richly the mgt will reward itself this time. They certainly outdid themselves.
Blue
