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Strategies & Market Trends : e-Commerce the Next 100 Months...... -- Ignore unavailable to you. Want to Upgrade?

To: DWEB IR who wrote (2352)	2/11/1999 6:32:00 PM
From: Paul Schmidt	Respond to of 2882

Just want to bring back on the thread's radar screen one of the stocks in your Low price Cats and Dogs portfolio: Wave Systems Corp: WAVX (BB:OTC) In past 2 weeks Stock appreciated from $3.5 - $5 range for past 8 months to peak @ $14 one week ago on volume of about 20 million shares (usual average about 100 000/day). Current trading range $8-10. Reasons for move only partially known: 1.Relisting on NASDAQ applied for. 2.Intel's interest in the "trusted client" concept on which Wave holds a lot of intellectual property. Wave share price moved dramatically (?coincidentally) after Intel speech of "1 billion trusted PC's by 2010" 3. Major OEM agreement expected - timing not sure. For those that are not familiar with Wave business model: Created with Hewlett-Packard, RSA, Sun, Verisign and others the EMBASSY trusted client concept in which Wave's Wavemeter plays a central role in providing security, cryptography and metering of digital content down to microtransactions. Implementation of this concept proposed in PCs, set top boxes, digital TVs , CD ROMS etc, etc. Wave plans to collect 10-25% on each transaction processed. Profitability: estimated 41-43% of total revenues once a reasonable base of EMBASSY chips installed. Breakeven on expenses reckoned by CEO to be achievable within 6 months of achieving 1-3 million installed EMBASSY chips in consumer PCs. Everything after that is profit. Execution of business model depends on getting the EMBASSY chips in the various gadgets. Chances of success has improved dramatically in the last 6 months as highlighted by various announcements. Wave Systems Corp does not regard itself as a hardware/security company, but wants to provide the cheapest, most versatile, and private consumer e-commerce payment system available. Position: I'm a long in this share. Bought @ a $1 15 months ago, completely in love with the big idea, and plan to hold for long time to come. Definitely not a plug, only a invitation to further DD. For the record, this company only had about $20 000 revenue last year, burns cash @ more than $6 million a year, yet has a market cap of ~$250 million. So: not for the faint hearted unless you buy the paradigm shift. Kind regards Paul