Wave Systems Corp. (fka WAVXQ)

[rwk]

New Dutton report is out.


http://www.jmdutton.com/research/wavx/reports/wavx_report_121406.pdf


Strong Speculative Buy Rating Reiterated in Update Coverage by Dutton Associates

EL DORADO HILLS, Calif.--(BUSINESS WIRE)--December 14, 2006
Dutton Associates updates its coverage of Wave Systems
(Nasdaq:WAVX) reiterating a Strong Speculative Buy rating and a $4.50
price target. The 12-page report by Dutton senior analyst David P.
Soetebier, CFA is available at www.jmdutton.com as well as from First
Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial
portals.

Wave Systems is a leading provider of "trusted computing"
solutions. "Trusted" computers use a combination of hardware (Trusted
Platform Modules or TPMs) and software to reduce or eliminate the
possibility of the software installed on a personal computer being
corrupted, and to verify that the user on a PC is the designated user
of the machine. Because the rate of adoption of this technology is
unknown, we believe it is difficult to develop an accurate earnings
forecast. However, in 2005 and continuing through 2006, Wave has made
significant progress in releasing new products and in solidifying
relations with key OEMs such as Dell, Intel and Seagate that should
drive sales. We believe the Company addresses a large market
opportunity, and at some point all PCs will be Trusted computers.
Consequently, for those investors willing to consider an investment
that offers the potential for significant appreciation, keeping in
mind the risk that the Company is effectively out of business if its
products are not widely adopted (i.e., it is not cash flow positive),
we believe Wave offers strong speculative appeal. Consequently, the
shares are rated a Strong Speculative Buy with a 12-month target price
of $4.50.