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

To: Scrapps who wrote (401)	7/25/2000 11:58:45 PM
From: Bobo	Read Replies (2) \| Respond to of 2404

Houston, we have a problem.... No I am sorry Houston, we have a frickin' disaster. I will say for the benefit of longs (so they have time to scramble out) that this report was disastrous under the surface. There is (was) one reason to own this stock and it was for royalty revenues that would ramp wildly with the ramp of DSL. But as is clear in the report, the were F-L-A-T qtr to qtr. How can this happen in the face of Globespan and Virata growing 50% sequentially. OK, so now we have a engineering firm with a few wildcard patent claims valued at $1.3bb. Mark my words, this stock is sub $40 within a month if not a week. I listened to the conference call and will share the following opinions. - The analysts danced very carefully around the royalty issue. They know that this was a disaster and they no longer have a reason to recommend this stock to clients. - The only reason Aware mgt broke out customers was that it made their large, named customers more prominent and they needed something to be a bright spot. - Paul Johnson has to patronize mgt, HE IS THEIR UNDERWRITER. He knows that this was very bad as well. Most of you have very nice gains in this stock so do yourself a favor and get out. This may be worth buying as an option on Aware's potential patents at $20 but not at this price. I am shocked that ADI did not have to lose the Cisco business for this to happen. What do we see next Q, negative royalty growth? Hmm, I wonder if any royalty contracts were renegotiated. Something is very fishy with this line item from Q1 to Q2.