Wave Systems Corp. (fka WAVXQ)

[SPIN]

timmers - any thoughts on whether the most recent PP will be approved by the SEC prior to 01/31/03?

everyone on the wavoid side of the equation is so ready to see the potential upside, but all too often neglects to opine on the very real risks.

Wave has enough cash to fund operations through January. also has SSPX shares to sell & possibly some revs trickling in from MB sales.

if the SEC investigation takes longer than a month & a half (extremely possible IMO), how will Wave register & sell those shares from the PP?

seems unlikely IMO that the SEC will permit Wave to print any more new shares until they conclude the investigation (as that is ostensibly a focus of the probe -- options exercised & dumped into a pump).

& don't forget that, assuming they are able to unload them, there will be 7+ million shares coming in to the market (please don't tell me they were already shorted against the box either b/c that is nonsense).

there are currently 4.2M +/- shares out short (as of 11/15/03 per NASD) & a UPC-11830 restriction in effect. no way did 10%+ of the total shares outstanding get shorted into the market in the last month, esp. w/numerous 300-400K volume days.

if they had, the stock would already be below a buck...