Wave Systems Corp (NASDAQ) (WAVX) – A Secure Buy
By:NewsyStocks   Tuesday, November 29, 2021 1:52 PM

Wave Systems Corp., develops, makes, and markets hardware that increases digital security. Its products are compliant with Trusted Computing Group specifications and provide security of identity, data, platforms, electronic transactions, and more. It has recently entered into a pact with Samsung to embed its security solutions in Samsung's security chips for OEMs.

In Q3 2011, Wave's net revenues rose 42 percent to a record $9.5 million. Though its income is still in the red or on the negative side, Wave has shown solid sales growth. However, the recently announced pact with Samsung will boost sales leading to positive earnings per share. As Samsung has a large proportion of the chip market, this pact will ensure that Wave has better sales in the next quarter. The company has products that will add value to the host of electronic devices that need to be made secure.

While traditionally, computing device manufacturers have added a layer of software security to their products, Wave offers them the chance to embed security at the hardware level. With increasing levels of mobile device use, companies are expected to want this additional security. It certainly comes in the nick of time considering the various reports of people/customers complaining about security concerns or breaches.

Wave is a candidate for Investors looking for near-term profits. While the fact that Wave has yet to deliver on its promises in the profits, it has few competitors in its area of expertise. The entire industry is moving towards more secure computing devices and Wave may benefit from it with increase sales and additional contracts.

Wave share prices are likely to go up in the near term as analysts and investors realize it's potential. It may be a good takeover candidate for hardware manufacturers.