Wave Systems Corp. (fka WAVXQ)

[lugan]

Dutton Report:

Our price target remains $4.50 (adjusted from $1.50 to reflect the 1-for-three reverse split of earlier this year). Third quarter revenues were below our
estimate but we are more confident in the outlook primarily because Dell is now shipping more models with TPMs, the disk drive related business is
closer to reality and we have seen the beginning of customer upgrades to EMBASSY Trust Suite software. Consequently, for those investors willing
to consider an investment that offers the potential for significant appreciation versus the risk that the Company may go out of business if its products
are not widely adopted, (i.e., Wave is not cash flow positive) we believe Wave offers strong speculative appeal. We have a Strong Speculative Buy
on the shares.