Wave Systems Corp. (fka WAVXQ)

[Escrow56]

There has been lots of talk about valuation and how the share price may be getting ahead of itself. I strongly disagree. If you make just a few educated guesses and then use accepted valuation multipliers we will shortly be considered grossly undervalued.

Our current earnings at slightly over 20% growth gives us about a forty million dollar year. A surprise like HP adds about 20 million a year. At 60 million we are over .50 cents per share earnings. At just 30 times forward looking earnings (way low for a stock with income rising close to 100% a year) and you have a SP of $15. I consider this very realistic and easy to achieve. If this quarter gives us at least 7 million and we get over 8.5 million on the next quarter we should be at that 15 level since the earnings growth trend is becoming more predictable the longer it stays steady or increases.

I would be interested in any feedback showing me any mistakes I might have made.