Wave Systems Corp. (fka WAVXQ)

[bbigtim]

Zeev/Pulling Certificates

There have been occasional naive suggestions by some during past short attacks that Wavoids should pull their shares by demanding certificates. I have always maintained that this is utter silliness. Under the applicable legal rules, all that should be necessary is to move the shares to a cash account where they are not hypothecated for lending. You are right that some brokers do not routinely pay attention to this distinction. However, once a Nasdaq upc restriction goes into place, they usually get religion pretty quickly.

My gut tells me that even a modest reduction in the supply of available WAVX shares would cause some shorts to be "bought in." When this happens, the market makers always get wind of it and they get very stingy. I actually have my WAVX shares in a margin account at present,. However, I don't need them there, and I may decide to transfer them to a cash account suddenly at an opportune moment. ;>)