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

To: Bobo who wrote (432)	7/26/2000 11:51:57 AM
From: Elroy	Read Replies (1) \| Respond to of 2404

Bobo, I agree it is an expensive stock, but are you telling me you could not find an expensive stock that may have a shortfall in the next 2-3 years? There are gazillions of expensive stocks, but you have chosen one that has leading edge, state-of-the-art technology, and expects to grow EPS 100% year over year, and who knows after that? Your rational seems bizarre to me. If you were arguing that Aware will lose market share, or you had some reason to argue that their contract revenue is unlikely to produce royalty revenue down the road I would listen, but I don't understand why you can't find more attractive expensive short possibiltities than Aware. They are going to grow, and the rate is uncertain, so why short the stock? Elroy

To: Bobo who wrote (432)	7/26/2000 5:21:28 PM
From: StockDon	Read Replies (1) \| Respond to of 2404

Hello SI, thought I would check things out over here. Bobo, care to back up some of your claims? Most of their IP is G.lite oriented, which limits any royalty. Why do you say this? ADI, Lucent, Infineon, Intel and AMD all license Aware's full-rate DMT ADSL and G.Lite ADSL. Other key patents have been awarded to TI/ Amati, Alcatel and others. Amati/TI has been talking about their key patents since 1996. 4 years later and Aware, ADI and Alcatel have not paid a dime to Amati for any ADSL related patents. Now lets look at royalty revenue. Agree that at first glance the 7% sequential growth in royalties does not look exceptional, but this is mainly due to slow sales of the WildWire in Q1 '00. You also can't base growth entirely on sequential growth. It's certainly worth noting that EPS were up 182% from the same quarter last year and royalties were up 266% from the year ago quarter. That being said, more important is what Aware will report in Q3 & Q4, which will be based on their customer's Q2 & Q3. Get out a pencil Bobo and write this down. Aware's royalties will growth 25-30% sequentially Q2 to Q3 and 35-40% sequentially Q3 to Q4. You heard it here first. StockDon

To: Bobo who wrote (432)	7/26/2000 8:31:13 PM
From: mike cobble	Read Replies (1) \| Respond to of 2404

Bobo, nice feedback from the other side of the fence. You are certainly correct regarding a fickle market. I've been long AWRE for quite some time, but concerned regarding price movements, also not seeing a lot of techs being rewarded for good to great earnings. I felt most comfortable liquidating my full long position this am at open (tough for a die hard awre fan). I'll see how the dust settles over the next 2-6 months, which I think is what the institutions and analysts are doing (talking out of both sides of mouth). Stock is either going to 60 or down to 30. Doesn't seem like the rewards are worth the risks in the current market environment and I don't want to feel the pain of another ride from the 60's down to the 30's. thanks for your 'alternative' view. m