Elan V: I wonder what more would it take for Wave to prove it is hopeless?
The company has not been able to sell anything, ever, in a sustainable way.
Top mgt has lied again and again about profitability, deals done and just needing signatures, tens of thousands of phantom seats, etc.
Last August the CEO said Q3 would be better than Q2, but wasn't by a long shot. He also said, once again, that the Q4 numbers would be at or near break-even. Not even close.
The Wave numbers guy, Mr. Feeney, CFO, said in the first quarter of 2011 Wave would have its first cash-flow break-even quarter from operations in the company's history. It was almost a word-for-word repeat of the CEO's same baseless claim a year earlier.
The evidence is all there in its entirety. The choice is either to look at the very real facts, or to believe some cockamamie BS story floated by the Pumperatti.
Want a view of the company's financial health? Wave has been auctioning off accounts receivables for about 85% of their value to get cash now--as someone else ably put it, a form of payday loan.
In addition, Wave has had an ATM and at least two Private Placements simultaneously.
Wave is under a grace-period Nasdaq delisting watch which expires in July, making another reverse split almost unavoidable.
Dell, the main contributor of Wave revenue is cutting back, with apparent plans to withdraw completely.
Let's talk about nepotism. All the Spragues currently on the payroll add up to about $2M per year.
After blowing through $47M at the helm of WXP, Michael Sprague is now head of Scrambls--a free service--scheduled by Wave to eat up another $6M (min.) this year.
A revenue contract promised by the CEO for Scrambls is still MIA. [It is a free service].
The purchase of Safend was ill-advised and due diligence was not done in a timely fashion, leaving them with a potential debt to Israel of $4M.
Read in the most current filings what Wave said about the "impairment" surrounding the Safend purchase.
In 25 years, not a single profitable quarter. Gross mismanagement of money raised (about $400M) has squandered any chance the company might have had to conserve resources for the challenges ahead.
This is a partial recital of the facts surrounding Wave and does not include the odious Founders Shares, interest-free loans to officers, including one for nearly half a million the CFO could not pay back until the BoD voted him a "special bonus" in the amount he owed. And he is the Chief Financial Officer, who still has his job!
This does not include the $250,000 check given to David Booth, written off without explanation or comment. [Booth was described by a co-worker as someone who wore tinfoil in his hard hat, to keep aliens from sucking his brains out.]
As I originally asked, what is there in this steaming pile of garbage that gives rise to any hope whatsoever?
If the incredible, jaw-dropping fiscal mismanagement and the repeated outright lies from the top don't get you, how about the unrestrained First Family Plunder?
Lies and faux promises and fabricated predictions are all that have kept Wave going. The oft-sheared sheep have been told repeatedly their turn is coming, just have a little patience.
So they keep buying, "loading up" on the many "extreme buying opportunities" created by mistakes, mismanagement and simple failure to attain traction.
The lack of traction for an alleged "solid gold security solution" which incredibly, can not be sold in a market starving for security, indicates how far from reality the promises about Wave are and how unlikely even a tiny percentage of those promises will ever be realized, if any at all.
Again, I ask the simple question, what about Wave is there to provide even the slenderest thread of hope for a shareholder who has bought and held and has been buffeted by perma-dilution and constant backward goalpost movement?
Not a single prediction or promise from Wave mgt has ever been kept! Not one.
Q2, Q3 and Q4 stunk as stunners of underperformance. Q1 is likely to follow suit, or actually be worse than the previous three quarters.
After being told how close we are to lift-off, how we are a lock for big returns--the reality is Wave's revenue is declining; bloated expenses are ever-expanding; the First Family and their friends are still on the payroll; no new business deals of consequence have been signed; and the financial desperation is about to reach the dangerous intersection of dire need and diminishing returns.
That Wave is auctioning its receivables, was able to raise only $1M in an hail Mary placement just before the Q4 earnings report, the accelerating pace of dilution welded to declining revenue--all indicates we are about to reach the point where the company can not continue.
Any investor who sees promise in these unbelievable circumstances in which Wave itself, placed the company in a deep, self-dug hole, is only practicing more self-delusion about the reality of Wave's bleak position.
Blue
