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

To: Agenda who wrote (1372)	3/17/1998 12:51:00 AM
From: Pure Folder	Read Replies (2) \| Respond to of 11417

Please elaborate on your concerns, jduffy. I am assuming you are worried that the holder of the preferred shares will short common shares in the open market to drive down the price of the stock and thereby reap more benefits when the preferred is someday converted to common. If there's more to it than that, please explain. (I'm very interested in knowing more about this possibility, because right now I'm leaning towards adding to my position because of the IBM news.) Did NTN and TCLN have one holder of preferred or many? What was the float and average daily volume compared to WAVX? Seems like this type of price manipulation would be illegal for a variety of reasons, and may even violate express provisions of the private placement subscription. I don't know. But I would imagine unusual selling pressure might be more easily traceable to a single actor, if such were to occur, rather than in a bigger market with multiple players. I'm upbeat about the IBM announcement, though puzzled by several things. This is the first time IBM has advanced the WAVX cause so definitively (to my knowledge). IBM was noticeably absent at the conference call last December. I'm puzzled that WAVX seems to be passing on the internet conferences, particularly the upcoming one in Boston because WAVX is headquartered in Lee, Massachusetts. (At least this appears to be the case as of January 10th; does anyone have updated info?) Wave's web site has historically reported, front-page as it were, its attendance at these events. The conference this week is a publishers' conference--content as opposed to OEM side of the equation. The announcement is very late in the making, almost an afterthought. Does anyone know if it was a late decision by IBM to include WAVX in its booth? Maybe it was planned all along, but only a late decision to issue a press release. I would not rule out any and all possibilities in the IBM-WAVX relationship. As I recall, IBM had tried to develop this technology in-house and dropped the program at about the same time they did the deal with WAVX. PURE SPECULATION, but I'm starting to think both parties are evaluating a wide range of options going from a standard OEM contract, to a joint venture, to even an acquisition of WAVX by IBM. I don't think it's time to fold on WAVX.

To: Agenda who wrote (1372)	3/17/1998 9:51:00 AM
From: Steven Sprague	Read Replies (1) \| Respond to of 11417

Wave has done a number of convertible Preffered financings. I am very focused on the financing needs of Wave and we see this as one of the key components of the companies success. The three legs that support Wave are content Finance and Platforms. We are trying to build momentum that is accomplished by growing the platform commitments, the content commitments and supporting it with Finance. We believe that we are making good progress on the finance side and we are actively engaged in a number of disscusions. I hope this helps address your issue if you have further questions please call us.

To: Agenda who wrote (1372)	3/17/1998 11:39:00 PM
From: Wahoograd	Read Replies (2) \| Respond to of 11417

An investment advisor familiar with Reg D financings has given me the following probable structure: The initial investment equals $3 million worth of current stock discounted at 15% from market price. No shares can be converted prior to 90 days. The investor is more concerned with downside protection than upside potential. Consequently, the return to the investor would be limited to 10% or 15% of the initial $3 million once conversion takes place For the best scenario: If after 90 days the stock price equals $5 then the Reg D investor can only convert to 600,000 - plus another 10 or 15%. The market would not get flooded with over 3 million new shares. If the price is higher than $5 then fewer than 600,000 shares are converted, etc. On the other hand, if the stock price should hypothetically be 50 cents after 90 days (assuming IBM and other OEMs fall through) then the Reg D investor can convert to 6 million shares - plus another 10 or 15%. This is obviously not the scenario we want!