Tuesday, February 07, 2012 5:33:06 PM
jermart.....lets talk about the issues that you raised....because they are talked about a lot from the short side....
1) They have lost money for 25 years....up until recently(25 year time frame) their burn rate was around 5 million/quarter. Last quarter Wave delivered 10 million in revenues. However....management decided that they needed to increase the burn rate to make the company stronger. By spending more money on engineering.....the company has increased the distance between itself and possible competition. If the rumors of us being involved with Windows 8 as well as the upcoming ARM chip are true.....then this would have caused Wave to increase their burn to position the company to take advantage of potentially large market opportunities. Unfortunately....we are in that period in which the street only sees the expense side without realizing the potential market this opens up for Wave. The more important parameter is the size of Wave's debt.
2) burnt through 350 million dollars.....Over the past 10 years....Wave has become THE company when it comes to Trusted Computing. They are viewed as the experts....don't take my word for it...just go back and read the prs put out by Samsung...when it comes to TPMs....read the commentary from Pricewater House in regards to TPMs....read the pr that Micron itself put out in regards to SEDs....read the acknowledgment section from the recent NIST 800-155 from the feds regarding BIOS integrity. Read the recent commentary from the US Army regarding the SOLE SOURCE contract. The shorts act as though the 350 million dollars were flushed down the toilet....instead....it has funded and created THE company in Trusted Computing!!!
3)Reverse split....it was done years ago when Wave was not generating more than a few hundred thousand dollars in revenue/quarter. They needed to stay on the Nasdaq exchange in order to have access to the capital markets....it was a decision that needed to be made to keep the lights on.....Those touch and go years also allowed some of us to accumulate VERY LARGE positions in the .30-.50 cents/ share range.
4)Insider sells.... not going to disagree with you....though not as bothered by it as others are.
5)New shelf.... the rdcent 8 k is not a new shelf....it takes 20 million from the existing shelf and created a manner to raise working capital in a more efficient manner. Unlike others on this board....I don't believe that Wave will raise the full 20 million....time will tell.
The shorts keep looking at Wave and the market opportunities as being static....unfortunately for them....things are about to change rather quickly....now remind me what the US ARMY recently said???
Sincerely,
Jas
1) They have lost money for 25 years....up until recently(25 year time frame) their burn rate was around 5 million/quarter. Last quarter Wave delivered 10 million in revenues. However....management decided that they needed to increase the burn rate to make the company stronger. By spending more money on engineering.....the company has increased the distance between itself and possible competition. If the rumors of us being involved with Windows 8 as well as the upcoming ARM chip are true.....then this would have caused Wave to increase their burn to position the company to take advantage of potentially large market opportunities. Unfortunately....we are in that period in which the street only sees the expense side without realizing the potential market this opens up for Wave. The more important parameter is the size of Wave's debt.
2) burnt through 350 million dollars.....Over the past 10 years....Wave has become THE company when it comes to Trusted Computing. They are viewed as the experts....don't take my word for it...just go back and read the prs put out by Samsung...when it comes to TPMs....read the commentary from Pricewater House in regards to TPMs....read the pr that Micron itself put out in regards to SEDs....read the acknowledgment section from the recent NIST 800-155 from the feds regarding BIOS integrity. Read the recent commentary from the US Army regarding the SOLE SOURCE contract. The shorts act as though the 350 million dollars were flushed down the toilet....instead....it has funded and created THE company in Trusted Computing!!!
3)Reverse split....it was done years ago when Wave was not generating more than a few hundred thousand dollars in revenue/quarter. They needed to stay on the Nasdaq exchange in order to have access to the capital markets....it was a decision that needed to be made to keep the lights on.....Those touch and go years also allowed some of us to accumulate VERY LARGE positions in the .30-.50 cents/ share range.
4)Insider sells.... not going to disagree with you....though not as bothered by it as others are.
5)New shelf.... the rdcent 8 k is not a new shelf....it takes 20 million from the existing shelf and created a manner to raise working capital in a more efficient manner. Unlike others on this board....I don't believe that Wave will raise the full 20 million....time will tell.
The shorts keep looking at Wave and the market opportunities as being static....unfortunately for them....things are about to change rather quickly....now remind me what the US ARMY recently said???
Sincerely,
Jas
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