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

To: Oliver Hahn who wrote (8683)	8/11/1999 9:14:00 AM
From: cm	Read Replies (1) \| Respond to of 11417

Oliver... Good Questions... I was a bit disappointed in the APPARENT size of the HAUP deployment. However, my impression only is that the present deployment will be dwarfed by the release of the Embassy-enabled WinTV Digital product. I tend to pay attention to nuances in conference calls. And I listened twice to the most recent HAUP conference call, as I did the one last quarter. And, to be frank, I don't think the HAUP folks were quite as effusive as they were in the original call. BUT, how much more effusive could they be? And the most recent HAUP conference call was fairly dominated by the subject of WAVX and not just because several Wave investors were asking questions. It is my feeling only that if this "proof of concept" deployment were looking pale to HAUP that they would be downplaying it. But, from their opening statements to the final conference call question, Wave was the running theme. Now, Oliver, admittedly, that's atmospherics. And atmospherics ain't nothing next to the reality of numbers. But, there is more. I believe that the EMBASSY-enabled WinTV Digital is going to be part of large promotion from HAUP and perhaps another party. Why? Put yourself in HAUP's shoes. The WinTV Digital is, or will be, their flagship product... and their highest-margin play. Now, at the prices they're talking about, it's quite a bargain. Were you HAUP--and earnestly seeking a way to derive a new revenue stream from your tuner card sales--wouldn't you want to make sure that there was some sort of serious splash around the time the Wave-enabled WinTV digital products hit? I mean, it's your hottest product. Your chance to get to a pretty fat part of the market... and, thanks to Wave, a RARE chance to derive ongoing revenues beyond the actual card purchase. This just makes sense. As for new funding sources for Wave. I don't know that answer. It's hard to speculate. I do know that Wave's international partner, ITG, released some news a while back that they were going to float the GlobalWave venture and raise something like 100 million pounds (I believe that number is right). Then, weirdly, there was no more news about that. For whatever reason, Oliver, it is (again) my impression that WAVX is going to be seen in a different light shortly. By end of year, for example, I think for every one of us who now knows WAVX as a certain kind of company, there may be 10 who will see WAVX as say a part of the DATACASTING revolution... and instrumental to creating new business models for Digital Television broadcasters. In other words, WAVX COULD be seen as a company, in league with the highly respected Sarnoff, that is taking TELEVISION into new territory. Not exactly an "internut" kind of play. As for your warning about the forecasted CPQ deployment. I take your point. But, this was a N*ABLE Technologies deal that we bought our way into. It was announced in a COMPAQ press release a while back. And I am betting this one is going to happen on schedule. Best Regards... and Skepticism Never Hurts... c m