Wave Systems Corp. (fka WAVXQ)

[dig space]

RWK/zen musings on SFLK

SFLK has 78 million outstanding.

At the end of Q3 Wave held 1.2 million shares.

I believe this places Wave well below reporting requirements.

SFLK durably trades ca. 250ksh/day.

I suspect Wave is dumping around 50k shares of SFLK per week.

Beginning Oct1 this would mean their current holdings are in the 1.0 million range.

These 200k share would have yielded something like $500k. Essentially my point is I expect Wave to continue to do what I speculate they have been doing which is to dump 4% of the traded volume on any given day, which is downward pressure, but not extreme.

This gives Wave “revenue” (in Feeney Speak) of $500k a month, essentially providing for half the burn.

This program would last for another 20 weeks (ca. end of Feb) after which the SFLK holdings would be exhausted.

Of course, if the market bears it the whole thing could run at 2x meaning Wave holds only 800k sh now and will run out in 10 weeks, or around the end of the year. Under this program SFLK fully provides for burn (more or less).

Regards,

Dig Space.