Mamabear: If you want to short Wave because you believe they have an unviable business model, or lack the management team to pull it off, that's fine. My point had to do with shorters who cross the line into illegal activity, something which you still seem to be in denial about. I've admitted that longs do it but you have yet to admit that shorts do it. So be it.
Moving on to more substantive matters, some heavy hitters in the industry happen to disagree with people like the fellow in the Barron's article about Wave's business model. This includes AOL who's bought Wave shares on the open market of late. Peter Sprague himself recently said, in response to a question about the valuation of the company, that we don't deserve ANY valuation if we can't deploy and gain market acceptance. (In which case, if the stock runs to zero and there are no buyers, then you probably shouldn't bother shorting this company but move on to another. In which case, via con Dios...).
I can accept shorting in general as a Darwinian means of thinning the market of its diseased members. However, the market we're talking about is changing rapidly. Boxmakers, facing ever thinning profit margins, are falling all over themselves to provide consumers with free ennabling hardware that generates revenue on an ongoing basis. Wave was a pioneer here, and the market is only now catching up.
Furthermore, in a sort of reverse synergy, comapnies that depend on subscription generated revenues, such as AOL and the cable and satellite industry, ALSO are looking at getting a piece of the eccommerce transaction pie. And why wouldn't they? If they are going so far as GIVING AWAY computers to add to their subscriber base, and perhaps even settop boxes in the near future, why NOT put a cash register with hardware based security in each one of those boxes, a FREE chip that gives them a piece of each and every transaction?
Of course, without great content there will be nothing worth metering. Here again, Wave has forged alliances with major content providers. The addition of Atari founder Nolan Bushnell to the board last week, as well as the recent addition of the former director of E3, only adds to the great alliances Wave already has forged with various content providers.
But you've probably done your DD and know all this already.
Regards. |
