Replies to post #23781 on Wave Systems Corp. (fka WAVXQ)

[rachelelise]

spin

I'm inclined to believe the SEC got engaged because of the recent private placement and submissions to them. If true I think that may be a better reason from investor's perspective than if there had been lots of complaints, an ongoing inquiry turning into a formal investigation. Now Wave has been at odds with the SEC on picayune matters this year so the environment was ripe for something like this. However if it is really just a question of what happened on those dates in order to verify there was no delierate pumping and dumping, then the investigation could be handled quickly especially if it is connected to the approval of the shares. Of course the outcome will be dependent on the facts and their findings -- but there shouldn't be a complex and large volume of facts to go through. One also has to be concerned about the reactions of the current private placement investors - to what degree to they still hold the shares and do they have recourse if something inappropriate happens. Its for these reasons that I think the net outcome of this is not settled at this time.

[timmers]

Spin

I wasn't aware that the SEC has suspended Wave's sale of shares related to the private placement during the investigation. Are you? I would appreciate any authority under SEC regulations or federal statute that supports your premise that the "SEC will [not] permit Wave to print any more new shares [related to the private placement] until they conclude the investigation..." I you're correct and can provide us with your authority, then I will agree with your concerns and hope that the investigation is wrapped up sooner than later. I am not an expert in SEC investigations.

I find it difficult to accept that just because there is an investigation of Wave, the SEC would not permit the sale of the shares. If there are any security law attorneys out there, please chime in.

I agree that there is an element of risk related to the SEC investigation. And this is a risky investment and has been since I've been an investor. But I've read Wave's PRs in July and August related to the exercise of stock options by Wave's management and the IBM/Intel relationships, read the articles about these relationships, listened to SKS during the conference calls, read statements made by SKS and Wave management during the SHM, and have followed the company since 1999. I'm not real worried about the investigation. Just my opinion.

I continue to accumulate shares during dips. My bet, and that is all it is, is that I will make a tremendous amount of money on my investment in Wave. I've accepted the risk that Wave may not fulfill my expectations.

[24601]

SPIN: You ask "how will Wave register & sell those shares from the PP?" Are you trying to confuse people, or do you really not comprehend the distinction between the issuance of shares and their registration?

The shares were issued in the placement. Wave has the proceeds. Registration relates to making the shares eligible for transaction in the secondary market. The registration statement will list the persons who bought shares in the placement as the "selling security holders."