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Technology Stocks : WAVX Anyone? -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (7674)	7/3/1999 11:33:00 AM
From: Minnow	Respond to of 11417

BEKlein, <<The shorts are as right on this as they were on IRID. This is technology or pseudo-tech seeking a market, or worse.>> No. IRID system was fundamentally obsolete from the start. All on the QCOM and GSTRF threads and those who follow George Gilder knew why. There is a market there, but we knew IRID would fall short of the mark. From early system tests these shortcomings were borne out. Initial deployment of WAVX technology in the HAUP board has gone very well and suggests not only the capability to satisfy a market, but to transform it. We knew the fundamental reason IRID would miss the mark. I don't see such a problem with WAVX. Minnow

To: Sr K who wrote (7674)	7/3/1999 12:16:00 PM
From: Jesse Livermore	Respond to of 11417

A fair question BEKlein, and it is hard to filter emotions from discourse. I will answer the question you posed. Wave Systems' shareholders expected a speedy listing and an announcement from our Embassy partner, Hewlett-Packard. NASDAQ sat on the application and we lost momentum. We did not get any substantial news coincident with relisting. We gained short interest. We lost those 'sell on the listing news' traders. We went down. We still expect the news that our Embassy partner Hewlett-Packard will ship and take a stake in the company. Speculation, yes, but groundless? Hardly. As for the technology, it cost Peter Sprague's (ex-Chairman of the board of NATIONAL SEMICONDUCTOR), company 56 million dollars to develop the metering chip. The chip is shipping. I use it in my pc. I know it's merits by direct evaluation. It was a brilliant idea, 10 years in the making, waiting for the market to develop. That has happened in 1999 with the advent of free computers, free ISPs, and limited advertising revenues. So, the market will come to Wave Systems now that OEMs and content providers know they can't survive with the free web. Your scenario is that there is no news because nobody wants to sell content and share revenues by using the WaveMeter, or its enhanced secure cousin, the Embassy chip. If you are right we will spiral down. My scenario is that content providers like ABC, NBC, CBS, FOX, TBS, NY Times, Barrons, Time-Warner, Sony, Nintendo, Random House, Universal Studios, Intuit, Columbia records, well, you get the picture... AND OEMs like Hauppauge, PC-Free, Actiontec, NEC, HP, Compaq, Dell, Gateway, well, you get the picture... WILL CONVERGE and announce that if you want the content you will be using the WaveMeter because they will share revenue and the consumer will gain the option of pay per view or rent to own, with consumption over the net, by give away CD-ROMS or DVD disks, sst-top boxes on the TV, satellite broadcast, etc.. If my scenario is right, what do you suppose our valuation will be? If they start announcing this month would you want to be short scratching for a few points?