Dvorak Technical Research, Inc. Recommendation. 12-20-2010
Wave Systems Inc (WAVX) $3.85 is a leading provider of client and server software for hardware-based digital security, enabling organizations to know who is connecting to their critical IT infrastructure, protect corporate data, and strengthen the boundaries of their networks. Wave’s Embassy suite is embedded in all of Intel’s motherboards where it receives some revenue, later if the system is activated by the end user WAVX gets paid a significantly higher license fee.
Disclosure: Dvorak Technical Research has recommended Wave Systems (WAVX) to its clients and its principles have made personal investments in (WAVX) shares.
Wave Systems Inc (WAVX) trades at 13 x sales and has grown its revenues from $5 million are per quarter to its recent quarter of $6.4 million, while managing its losses to around 1 cent per quarter.
Short term: The daily chart shows a strong breakout at $2.65 in late November. (WAVX) has overcome resistance at $3.75 today with strong volume, over one million shares. The next important level is $4.25 and then $4.75, the high for 2010. A move to new highs for (WAVX) is a very bullish signal longer term. Support is at $3.25 to $3.35
(WAVX) has a price target of $8
