Replies to post #183727 on Wave Systems Corp. (fka WAVXQ)

[rwk]

There is an

asymmetry to the risks and rewards of holding Wave shares through the Q3 earnings report, in my opinion.

The downside is kind of limited to the mid 80 cent level, say $0.84. The upside could be $1.60 given 1 cent per share quarterly earnings or even $2.40 at 1.5 cents eps quarterly, to pick some numbers.
So, buying at $1.09 could cost you $0.25 or pay you $0.51 or more.
From the survey results, it appears that expectations are centered around revenue of $5.75mm, which is an annual eps of about 2.5 cents which at a p/e ratio of 40 results in a share price $1.00. So the share price is saying either Wave makes more this Q3 or that the market is willing to price it at a higher p/e ratio given expecatations for the future.