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Technology Stocks : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Johnathan C. Doe who wrote (3996)	7/29/1998 10:54:00 AM
From: Norman Klein	Read Replies (1) \| Respond to of 9236

<<As for the business model for Aware, H and Q loved the model over a year ago and it is simply a timing issue as to the stock price right now. >> Yes, but a lot has changed in a year. There has recently been what seems to be a major change in their business model. According to this assumption, the change was great enough to cause the CEO to depart. I believe that before the business model was based on revenues from actual hardware sales (finished modems, line cards, ...). Now, it appears to be strictly licensing revenues. Also don't use AMTX as an example of insightful investing. Those investors were LUCKY!! It easily could have been close to a total loss. Amati was dead broke and couldn't even make that month's payroll. The Westell deal was truly a white knight coming to the rescue at the last possible moment. You can't invest hoping for miracles like that to occur on a consistent basis. I didn't miss anything by not investing in AMTX. Also I believe that in hindsight the view is that TI overpaid for AMTX. <<the perception that Westell is a CAP company is some ridiculous misperception that is constantly repeated. Westell is not line code specific and there DSLAM works with anything you can throw at it.>> My point is that Westell doesn't have any significant IP. They don't really bring anything to the table, that can distinguish their product from a competitor's. They have their current working relationships with telcos but that is about it, larger competitors will simply be able to push them aside. I view Westell as a very poor investment and not even as a good takeover candidate. I am still heavily invested in Aware, which means that I am always doubting Aware and looking for their weaknesses, as all good investors should.