Wave Systems Corp. (fka WAVXQ)

[barge]

Vacationhouse/Timmers/BullDulphin--Some final thoughts on Dinner with S. Sprague.

Thanks for the kind words. I just became member of IH. And the great advantage of being a member is that I can quickly review replies to my posts in a special "reply" section. I also just saw my private replies. Very neat feature!

Let me begin by stating that I'm probably a minority of one among Wavoids and non-Wavoids who doesn't accept the supposition that financing is head and shoulders the most critical issue facing WAVE. I see financing more in terms of being a significant annoyance. That is, the financial threat is dilution, and NOT insolvency. And S. Sprague felt confident that dilution would not be necessary; I hope he is right.

I maintain that the key to this investment is whether the extravagant claims made by S. Sprague about the Embassy Technology are in fact accurate. If accurate, financing will find its way to WAVE. The terms of the financing will be dictated by the timeframe of deployment. WAVE would have imploded way before 2003, if it were not for the very reasonable belief shared by many that Embassy's technology goes way beyond being nifty and cool, but can in fact be subsumed under the category of "missing link" technology that will usher in the next computing revolution, namely, Trusted Web Services.

Just how extravagant are the claims of S. Sprague? Let's list a few.

1. WAVE has the ONLY trusted computing technology available that can presently meet the TCG requirements.
2. TCG will be set back another year or so without EMBASSY's technology.
3. WAVE has lapped the trusted computing field many times over because WAVE has been working on the Trusted Computing technology since 1998, while the rest of the Industry has meandered about listlessly and aimlessly trying to develop more powerful and sophisticated firewalls that don't secure, and developing Internet Business Models that don't generate revenues. Consequently, WAVE stands alone on the Trusted Computing front. WAVE owns the prized space. And the Gorillas of the TCG know it.
4. According to S. Sprague, HP, IBM and INTEL, in large measure, came to understand the technology of Trusted Computing primarily under the tutelage of WAVE, and NOT the other way around. He mentioned how WAVE help educate Peter Biddle of Microsoft all about Trusted Computing.
5. The OEMs have committed themselves to deploy Trustworthy Computing THIS YEAR. And that deployment will not, and cannot, happen without Embassy's Intellectual property.

The above claims are simply staggering! But are they true? If true, I couldn't care less about dilution. And the evidence IMO is overwhelming that the claims are in fact true.

So can S. Sprague back up his unabashed swagger? His almost defiant, in-your-face confidence?

And, yes, there are moments when even I-----the undisputed King Guzzler of Wavoid Koolaid, known to guzzle imperial gallons of that pink liquid in one sitting----GULP! GULP! GULP! BELCH!!!!!!!!!!!!!!!!!!!!!!------- Even I sometimes wonder about the veracity of his claims.

But those moments of doubt quickly dissipate when I consider the following FACTS. Let's begin with the most recent FACT:

WAVE is the TCG chair of the Trust Infrastructure subcommittee. Not IBM, Not HP, Not INTEL, Not SONY, Not Verisign. NO! WAVE SYSTEMS finds itself perched atop that Chair. Let us not forget that the TCG (Trusted Computing Group) is the undisputed ground zero group where the World-Wide standards for Trusted Computing will be codified. There is no competing or alternative Trusted Computing Group. None.
And yet little OLE WAVE with its 85 cents a share stock price somehow has managed to find itself seated (perched atop a few telephone books) at the head of the Trusted Infrastructure table, with a big grin on its face (if you look closely!!!).
Does this leadership role add considerable credibility to his most incredible claims? Of course, it does!!!!

WAVE did not get that Chair through smoke and mirrors. WAVE did not get that chair because it has some mildly interesting technology that merits polite consideration by the computing industry. WAVE got that chair because of EMBASSY!!!! And EMBASSY is Kick-Ass Revolutionary. It is REAL. It has been tested, and proven functional in the real world. And it will turn the Internet Inside Out, to spell Trusted Web Services!

My doubts dissipate when I also consider the following:

S. Sprague prophesied back in 10/98 that the computing world would embrace the Trusted Computing paradigm. No one in the computing industry was talking about Trusted Computing. What were the odds at that point in time that WAVE's vision would one day be embraced by the Computing Industry? And here we are 5 years later and we find that every computing company worthy of the name is scrambling about trying to figure out how to jump on the Trusted Computing band wagon. Talk about a staggering prophesy come true!!!

So here we are in July 2003 and the computing industry with the OEMs fully awakened, and ready to put into play the vision that S. Sprague proposed back in 1998. Bill Gates, is betting Microsoft on the Trusted Computing Vision. And of course, the whole damn Computing Industry continues in frantic search for the Holy Grail technology that will propel Trusted Web Services into a living REALITY. And Trusted Web Services will NOT happen without Trusted Computing. As S. Sprague stated in the 05/15/03 CC:

"We believe we'll be at the center point of delivering most WEB SERVICES to consumers and enterprise users in the next few years."

S. Sprague has said, and continues to say, the following: We've been at this Trusted Computing thing a number of years before everyone else. We've been developing and creating and refining since 1998, the Trusted Computing technology and its complementary Trust Infrastructure. And as a result, we have in our hip pocket the essential Intellectual Property that can make Trusted Computing a Living Reality.

It's a heck of a pitch being presented by S. Sprague. You can buy into it or not.
And I've bought into it hook, line and sinker. Not with my eyes closed. But wide open. I'll soon find out whether I need new prescription glasses! lol!

Peter and Steven Sprague have always figured out ways to get capital. Always. And quite frankly I find it almost absurd to consider the possibility that WAVE will implode due to a lack of funds when they find themselves at the very brink of stupendous success beyond their wildest imaginings. After 15 years of struggle and eating dust and crow, WAVE will drop dead a few inches before the Finish Line? Hey, it's possible, but I think it is a safe bet that it won't happen!