[Fundamentals]
<<< The stock is down to 9-, Aware has closed a number of deals, the isiders(despite what they tell you the reasons are) have sold stock from 17 on down) and Cisco has taken over an ADSL company. >>>>
Yes, insiders have sold from 34 on down, but if you read the manifest, you'll notice they bought at 1 and 2, and you'll also notice the largest sellers were a retired board member, Silverman, a venture capitalist, Don Lucas, and Amati's founder and holder of over a million shares, John Cioffi.
Now to your next issue, Aware's deals versus Amati's, if you look closely you'll find Amati's decisions have been based on concern with shareholder value, long-term, not with signing empty non-exclusive partnerships that look impressive short-term. The contract with Motorola is a licensing agreement and because the chip-solution is non-flexible, in order for MOT to upgrade, they will have to negotiate a new contract; the contract with NEC provides for licensing and co-production, including marketing and tech support; and the contract with TI includes co-production, marketing and tech support as well as pass-through on all intellectual property, including software upgrades going forwards. In no case has Amati taken the sure and easy route by selling the codes and letting someone else own the technology and thereby become a forceful competitor. If I were an Aware shareholder, I'd be concerned with their USRX contract. As for Aware's partnership with PairGain, why did Strauch tell the Robertson Stephens audience that they were developing their own Falcon chip and AWRE was just a hedge? And why did he say the same thing today on their conference call? And with Ascend, again, it's a non-exclusive agreement and they're still talking to Amati. Incidentally, Cisco did not take over an ADSL company, Telesend has a DSL solution similar to Ascend's ISDL, a niche product.
If you're saying Aware's contracts are superior, I submit you've not done your homework.
<<< Management may be bright academically and tecnology wise but they
can't close an order. They don't have a Bill Gates(who does) or Larry Ellison who demands results. >>>>
Amati has closed many contracts that are publically known and many that aren't. Trial announcements in brackets.
* Feb. 6, 1996 -- [GTE agrees to test ADSL/DMT.]
* April 29, 1996 -- Motorola agrees to develop ADSL/DMT.
* May 22, 1996 -- [Swiss PTT trials a success.]
* June 25, 1996 -- NEC agrees to develop xDSL/DMT.
* August 7, 1996 -- [Tadiran VOD trials a success.]
* August 14, 1996 -- GTE and MSFT launch high-speed trials.
* August 4, 1996 -- 8X8 teams up to deliver TV quality video conf.
* August 14, 1996 -- [GTE/MFST announce 6-month trial at MSFT HQ.]
* Sept. 17, 1996 -- XEL Comm. to co-develop ADSL products.
* October 7, 1996 -- Chatterjee/Soros sign investment agreement.
* October 17,1996 -- Texas Instruments to co-develop ADSL.
* Nov. 11, 1996 -- NEC agrees to co-develop VDSL.
* Nov. 18, 1996 -- [France Telecom tests a success.]
* Jan. 20, 1997 -- Allegro launched.
* Jan. 31, 1997 -- Sourcecom to co-develop integrated solution.
* March 17, 1997 -- Euristix to co-develop SNMP management system.
* March 20, 1997 -- [MCI/NEC Iowa trials a success.]
* April 7, 1997 -- Sumitomo to market and deploy xDSL solutions.
Publically confirmed but unannounced milestones include HKT/NEC contract for ADSL and VDSL (estimated at 400,000 lines), extended trials with France Telecom, engineering assistance to Alcatel, and trials in 40 countries, most unheralded because of non-disclosure agreements.
Acknowledged but unannounced milestones include co-development with Siemens and tests with Nortel.
As for Bill Gates and Larry Ellison, their names weren't well-known until they'd had some success.
If you think Amati's management can't close deals, then I submit you haven't done your homework.
<<<Like many investors(I'm afraid including yourself) it results in investment with your heart rather than your head. Experience has tought me that this type of investing can and is usually very costly. AMTX is no different. >>>>
If you think I or any of the regular contributors on this thread have invested with our hearts over our heads, then I submit you haven't read this thread and once again haven't done your homework.
In conclusion, if you really have sold based on what you claim, then perhaps it was you who let your emotions rule the day.
Regards,
Pat |
