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

To: SDR-SI who wrote (7871)	7/5/1999 9:34:00 PM
From: Golden Bear	Read Replies (3) \| Respond to of 11417

Mr. Rosenberg, I appreciate your candid remarks about the investment risk in WAVX's stock. I am not surprised to see the majority of these risk factors. In fact, I would have cause to be suspicious in their absence. Hopefully, we can discuss these objectively in future posts. I AM surprised, however, of the thread's lack of appetite in addressing the "patent" issue. Specifically, the section reproduced below: ..."due to the uncertainty as to whether these other patents could be proved to be invalid, we have engaged in preliminary negotiations with the patents holder to obtain a license thereunder. The negotiations have so far not produced any agreement and we cannot assure you that we will be able to obtain a license on acceptable terms, if at all. Our inability to obtain a license, if needed, on commercially reasonable terms or to invalidate the claims would have a material adverse effect on our business and our future operations." After reading the above, a prudent investor could believe WAVX faces some risk of being prevented from executing its business plan. Further, there is the chance of competition, as referenced in a preceding paragraph: "...also, the holder of these patents or its licensees could seek to invalidate the claims of the patent which we have licensed and therefore be able to commercialize a technology similar to our technology." These comments were stated in the context of WAVX's acknowledgment of four pre-existing patents which make at least some similar claims to certain "material aspects" of WAVX's technology. A potential investor would be interested in taking a closer look at the patent risk, associated with this company. Investors, emotionally attached to their stocks, easily dismiss such risks. Mr. Rosenberg, I cannot imagine one as bright as you would attempt to minimize this patent exposure. If you have thoughts regarding this issue, please share them. gb (p.s. have you hugged a bear today?)