Replies to post #74092 on Wave Systems Corp. (fka WAVXQ)

[buffetguy]

gokite Could you help me out with this thought?

I agree with you that Wave System's market is going to grow very dramatically over the next couple of years.

Will Wave Systems have any issue in cranking out product to meet the demand?

This is the flipside of our prior problem. Our past 'problem' was 'NO MARKET'.....or no market to sell into. Now we have this rapidly expanding marketplace setting up before our eyes!

Will we be able to produce enough kits fast enough to meet the demand?

What is your feeling here?

thanks in advance.

[unixguy]

Go, well written post. Again time will tell which one of us is right on this argument. Have a good day. Regards Unix

[rachelelise]

gokite/unix

The longer term market is for the services to support the installed base. Wave's initial revenues will be from the basic stuff which should be more than sufficient to support the company's expenses and is happening over the next year. Wave's business plan is not any different than other service firms - produce leverageable annuity relationships. I suspect that a meaningful part of the R&D effort is focused on the this area since being connected with Intel, Dell, NSM and STM (at least) puts them in the boxes. Managing and enabling services is the next step and they obviously know it. I wonder when the competition will enter and where it will be focused. The actual services are one clear area but enabling the services may still be opaque enough to allow them runway to become dominant.

The true vlaue of the company will depend on their success in this space. But it does appear that some minimum value (over $70 million market cap) is supported by the current relationships and the obvious market push and pull that is growing.