Wave Systems Corp. (fka WAVXQ)

[New Wave]

Jas, I expect the VCs would have been made aware of the emerging market for trusted computing along with Wave's key role, but as I understand it VCs are typically very disciplined about cashing out as soon as their investment becomes liquid. This is just the way they opperate. These VCs have been involved with Safend since 2005, so I suspect they were more than ready to move on, no matter how promising Wave's prospects. That being said, an investment banker who has worked with Wave believes these VCs may still retain 25 to 30% of their Wavx holdings for the potential upside.

In any case, the selling pressure - including the past three months of shorting against the box - should subside before long.