Wave Systems Corp. (fka WAVXQ)

[Snackman]

Some insight from a friend of mine.
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I work for a drug company that several years ago was hit by an SEC
investigation. The CEO sold some shares during a time period when the stock price was rising (as were many other companies). He truly believed that we were going to obtain FDA approval for one of our drugs, and behaved accordingly (e.g., signing long-term leases, when it really wasn't necessary). When we got the bad news of the drug not being approved, the stock price took a huge hit. Then, some time later, news of an SEC investigation hit, and the stock price got hit again. The great percent of drop occurred on the day of the news. We then bounced around that low point, stabilized, and have made a steady and significant improvement in stock price.

The SEC investigation, while very upsetting to the outside, is not all that rare. Any time a company experiences a big jump or big drop, the SEC looks into it carefully. In my company's case, the investigation continues, essentially outside of the consciousness of the shareholders and potential investors. The credibility of our company is based on future prospects for business and revenue, and in our case, the street views us favorably.

Personally, I think the SEC investigation will ultimately be dismissed. The ex-CEO, if anything, was guilty of a variant of "irrational exuberance", and is now battling that mistake out with his lawyers.

If Wave experiences what our company did in a 12 month period (a
3-bagger), I'll take it.