Wave Systems Corp. (fka WAVXQ)

[aleajactaest]

"The market is more efficient at pricing liquid investments with established business."

Again, you inhabit a different universe to me.

If we are to believe the theory then Wave is doomed.

The notion of liquid investment efficiency was made ridiculous in the tech bubble years around 2000 (see Shiller's Irrational Exuberance). Witness Wave's stock price.

The notion of mortgage and real estate efficiency was made ridiculous in 2008 (see Shiller's Irrational Exuberance, later edition).

For what it is worth, he just won the Nobel.

Markets aren't efficient. They are just fairly unpredictable in the short and medium term, which has the same effect of folks not knowing what is going to happen tomorrow. Folks can and do know the pricing is mad but they can't know when the madness will stop. It's a time thing.

Bubbles are bubbles because of mispricing and the manipulation, irrationality and emotion of individuals and groups. Goodness knows how the efficient market hypothesis ever persuaded folks of their collective wisdom.