Wave Systems Corp. (fka WAVXQ)

[rachelelise]

CPA - Dutton

As you know, it is increasingly difficult for companies to have any analyst coverage anymore and it is almost impossible if you are micro cap company and not using an investment firm for purposes of financing. The emergence of independent but paid analysts is not a bad thing and it can make sense for Wave (or other companies) to utilize them in order to get a financial and fundamental analysis into the public domain. I certainly wouldn't expect the analyst to pan the company at the outset but I also wouldn't expect them to tout the company like conflicted analysts did all the time back a few years ago.

That said one can find faults with the summary and analysis although a lot of it does make general sense.

If I were writing these pieces I'd also be cautious in terms of predictions, especially if I looked back at Pacific Growth and Adams Harkenss - both of whom saw the possibilities but misjudged the market and maybe got too optimistic based on discussions with Wave.

My sense is that most of the Ihubbers have a reasonable understanding of the threats and opportunities and also have a rear view picture of the past opportunities and results. There are a variety of scenarios that are all plausible but applying probabilities to them is far less scientific than I'd wish.

I think Wave will be able to finance the company under almost any scenario but the cost (which is currently way too high) could become even higher. There is obviously always the possibility of a buyout and all sorts of upside if sales ever really begin and/or additional gorilla partners are added.