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Technology Stocks : Aware, Inc. - Hot or cold IPO?
AWRE 2.160-2.3%3:59 PM EST

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To: Tony Harper who wrote (1967)9/7/1997 12:38:00 PM
From: Peter Dierks   of 9236
 
Tony:

I have bought under 10 in the past and watched it go up. This stock has a tendency to go to 17 and fall again to 10.

They are using up their cash reserves at a pretty good pace. As long as they had enough cash to report the investment earnings I liked the stock. Their R&D budget is outgrowing their investment income.

Hold on, it will probably fall again. Just rememeber that one day they will have to break out of the pattern. You want to make the correct decission before that happens. If the stock price goes to 80 then splits, and repeats this pattern, you want to have owned it long. If it ceases to exist, they you want to be out of it and maybe short.

I still like the long term prospects, but they are in the consumer area. Backbone has to get a lot better before they will see a big demand.

One last caveat. Wall Street looks ahead. Within 48 hours of a solid sounding rumor the news is factored into the price. any movements after that are based on overreaction of individual investors.

Hope this helps.

Peter
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