Replies to post #115984 on Wave Systems Corp. (fka WAVXQ)

[Snackman]

Supply and demand of the technology?

[awk]

zen: I personally suspect - I have no links or proof - that the reason for this Broadcom arrangement is somehow tied to HP. So, I expect some kind of HP arrangement to surface relatively soon...

HP has been procratinating...now they need to bite the bullet!

All in my opinion.

[weets]

Zen,

Every deal is different. IMHO, by the end of 07' Wave will make north of 400 million dollars & you will be able to move the decimal point two places to the right!!! Carl.

[dig space]

zen, prepayment

When one reads the sentence or two provided it doesn't make that much sense ....

how does one have an "intitial pre-payment" but with no minimum ... seems wave (due to cash realities) is giving the first load to BRCM at a deal rate to pull in some coin.

e.g. if one pre-pays 10M chips at a nickle (as opposed to a dime) then Wave gets $500k instead of a $1000k ... I would expect it to book as a def-rev/liability ... as since there is no minimum in the deal, BRCM could back-out (or so it seems).

I really think we are looking at a deal where Wave is reducing their cut for near-term cash-flow. I think it likely extends to only the first few lots (10 or 20 million).

But heck, I am making *all* of this up. It is the type of slush that, (with the warrants should they come into the money) would make it all good for Wave and reduce future dilution.

[gowave1]

Perhaps Broadcom's recognition that:

Wave's technology is best for Broadcom and Broadcom's customers.

Wave's financials are in dire straits.

Therefore,

If Broadcom helps Wave's financial with a little chump change pre-payment and in turn, can offer their customers a better technology!

I saw that and I liked it...alot.

[24601]

zen88: On the other hand, Wave almost certainly bargained for the up-front money. Maybe it drove the price-per-part to a nickel (from six cents), or to a dime (from 11 cents) in exchange for an immediate infusion of operating capital. All bargains have offsetting considerations. When a car can be bought for a negotiated price with either 0% financing or a $1,000 rebate, that tells me that a purchaser who opts for the financing is paying $1,000 to buy-down the interest rate. So I assume that the up-front money costs Wave something on the other end.

Best wishes,
John