Replies to post #3737 on Wave Systems Corp. (fka WAVXQ)

[dave_s]

Zeev,

Mostly all shorts likely covered on the run from $1 to $5.

New shorts could not be initiated by most folks below $5.

Current short interest is likely less than 1 million shares.

Dave

[internet]

Zeev...re shorts...At this time...given this tremendous volume...the shorts are not an issue. This will change as the volume subsides. The real question is whether or not we have some new shareholders of the special kind...institutional vs corporations. For those of us who have been following this company for years...the last couple of major announcements have indeed been TREMENDOUS. The 3 announcements that I would point out to you would be the following:
1) National Semiconductor
2) Intel
3) IBM

The first two are self explanatory...the IBM anouncement is VERY important because there is ALREADY a built in demand for these applications from their pre-existing ENTERPRISE clients This point has been hamered home in previous comments from our CEO.

Sincerely,

Jas

[KNFCC]

Zeev Hed,
wavx, rambus & just about every other tech stock did the same thing during that same time period. Different times nowdays.

[bbigtim]

Zeev/Short Interest

I agree with you that the most recent reported short numbers are not at all impressive. However, I think it is likely that short interest has increased dramatically during the last part of this amazing rally. We already have one report of WAVX shares moved to a margin account and another of a shareholder who was offered incentives to pledge his shares for shorting. I think we will find that this is just the tip of the iceberg.

Lets face it. Based on historic performance, those who are shorting this rally are not exactly irrational. Wave has repeatedly failed to capitalize on dramatic opportunities in the past, and a lot of people have made a lot of money shorting WAVX. But the current opportunities are clearly more tangible, and the volume of recent buying is totally off the scale. Maybe the shorts will get a good opportunity to cover following a gradual pullback. But any real news that stimulates further buying interest could be incendiary.

[rachelelise]

Zeev

Four days ago, volume of 500,000 shares would have been notable. In fact there were many 100,000 share days and shorts were able to manage any upward bias trends since the buying pressure was minimal except on certain one day occassions. Admittedly the last few days have seen an uptick in volume -- but these levels won't last forever and at some point we will be back to the 5 million + shorts providing some downside protection and potential fuel upward.