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

To: PeterR1700 who wrote (14249)	12/6/1998 10:37:00 PM
From: Skiawal	Read Replies (1) \| Respond to of 21342

WSTL mentioned...Aware Inc. Jumps 16%; Analysts Cite Optimism About ADSL By Dinah Wisenberg Brin, Staff Reporter PHILADELPHIA -(Dow Jones)- Shares of Aware Inc. climbed 16% and set a 52-week high Friday, movement the company and analysts attributed to general optimism about ADSL, a high-speed Internet access technology in which the company specializes. The Bedford, Mass., company had no specific news to drive the shares Friday, President and Chief Executive Michael Tzannes told Dow Jones. "There's just a lot of general momentum right now behind ADSL," Tzannes said, referring to asynchronous digital subscriber line technology, which moves voice and high-speed data over phone lines. Some other DSL stocks put in lackluster performances, but Tzannes said it's difficult to compare directly because Aware focuses purely on intellectual property, while other companies also manufacture the equipment. Aware shares (AWRE) closed Friday at $22.563, up $3.063 on volume of 1.3 million, nearly three times the 458,800 daily average. Earlier, the shares reached $22.75; the previous 52-week high was $21.688, set on Nov. 27, and the stock has soared since its low of $4.25 set on Sept. 11. Shares have been rising since Oct. 22, when the International Telecommunications Union adopted an ADSL technology standard for residential data service, G.Lite, that is driven by Aware intellectual property. "I think what you have is a continuing phenomenon of investors making a decision that ADSL is real, and then asking themselves how do they play it, and then looking at Aware as one of the most viable vehicles in which to play ADSL," Stephens Inc. telecommunications analyst Charles W. Pluckhahn said. On Monday, Pluckhahn raised his one-year price target for Aware to $32 from $18. Ever since the telecommunications union announcement, Stephens Inc.'s Pluckhahn said, several development milestones have been met, including Compaq Computer Corp.'s (CPQ) decision to install ADSL modems in its personal computers. SBC Communications Inc. (SBC), the parent of Southwestern Bell, has said it will offer ADSL phone service to customers in some areas. And on Thursday, Dell Computer Corp. (DELL) and 3Com Corp. (COMS) announced plans to deliver high-speed modems to match SBC Communication's ADSL service. That may or may not directly affect Aware, Pluckhahn said, but "I think people are probably connecting some dots. "I suspect that might be a part of it," he said, referring to Friday's price rise. Analyst Michael Neiberg of ING Baring Furman Selz Inc. said that over the last couple of weeks, "the assumption of just about every conference call you hear" is that the companies are more optimistic about the ability to sell ADSL to the phone companies in 1999. Investors like Aware's business model - unique in the ADSL market - in which it receives licensing fees from chipmakers that use its technology, Neiberg said. That protects it from vulnerability to price cuts, he said. Pluckhahn said Aware has a better chance of making money and generating growth in the near term than two other Internet pure plays, Orkit Communications Ltd. (ORCTF) and Westell Technologies Inc. (WSTL), because those companies also face the more competitive ADSL equipment market. Westell closed at $5.313, down 5.6%, on Friday, while Orkit ended at $15.063, up 2.6%. "They're the only pure play intellectual property vendor out there," he said of Aware. "It doesn't mean that everybody uses them ... but they have a very good position in the market." -By Dinah Wisenberg Brin; 215-656-8285 Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.

To: PeterR1700 who wrote (14249)	12/6/1998 10:40:00 PM
From: Dug	Read Replies (2) \| Respond to of 21342

<Sadly, I bailed on wstl awhile back. The wait got to me.> Hi Peter, Id say that was a good decision on your part. <Is anyone making money in adsl?> Probably some phone co.s but not many if any vendors. Id guess Csco is a possibility. <Any pure plays out there?> Awre & Orctf are the pure plays for now. Adsl is kicking the shit out of wstl. Awre is grabbing many headlines & thus the run. Id be cautious though. I don't see much in way of an upgrade model as licensing is Awre's bread & butter. Id bet TI didn't pay all that money for Amati w/o reason. Or @ least Id hope so, it would be too much to see the CEO fire himself. :} Orctf appears to be an IP play as well. Vdsl is where the real game is be played. Ive read more than a few times that QAM is making some inroads there but JW@KSC or one of the old timers would be more knowing in regards to such. Dug