Wave Systems Corp. (fka WAVXQ)

[bbigtim]

Zeev/Short Interest

I agree with you that the most recent reported short numbers are not at all impressive. However, I think it is likely that short interest has increased dramatically during the last part of this amazing rally. We already have one report of WAVX shares moved to a margin account and another of a shareholder who was offered incentives to pledge his shares for shorting. I think we will find that this is just the tip of the iceberg.

Lets face it. Based on historic performance, those who are shorting this rally are not exactly irrational. Wave has repeatedly failed to capitalize on dramatic opportunities in the past, and a lot of people have made a lot of money shorting WAVX. But the current opportunities are clearly more tangible, and the volume of recent buying is totally off the scale. Maybe the shorts will get a good opportunity to cover following a gradual pullback. But any real news that stimulates further buying interest could be incendiary.