Wave Systems Corp. (fka WAVXQ)

[xxxxcslewis]

The improvement in revenues to this point has, for the most part only reflected the improved bundling revenue agreement with Dell. That increase is limited by Dell volume and will allow the company to barely breakeven. That is all the market sees.

There has been little tangible evidence of additional revenue streams. Additional revenue streams will essentially go directly to the bottom line. A necessary condtion for a PE is earnings. Anecdotal evidence now exists and leads me to believe the situation is changing. When we see tangible evidence the two new revenue streams are building, SEDs and central management of SEDs and TPMS, the stock price will begin to move dramtically.

There will be around 400 million TPMs out there by the end of 2009. SED is a superior solution to software. Somewhere I read software unit volume was 50 million seats in 2008.

The potential is massive. It is a long way from no revenue to $20 million. It was the hardest part of the journey. The journey from $20 million to $100 million will be much faster. The journey form $100 million to a billion even faster. Put whatever PE you want on a hundred million shares. Its a big number.

We may or may not be there yet, but my opinion is we are very close.