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

To: TREND1 who wrote (5600)	2/10/1999 9:40:00 AM
From: Paul Lee	Read Replies (2) \| Respond to of 9236

February 9, 1999 Dow Jones Newswires Aware Down 10%; Analyst Cites Small Lycos Premium Dow Jones Newswires NEW YORK -- Aware Inc. (AWRE) shares fell 5% Tuesday after dipping 10% intraday, as other Internet and telecommunications equipment stocks tumbled across major market indexes. Stephens Inc. analyst Charles Pluckhahn said the small premium offered by Barry Diller's USA Networks Inc. (USAI) for Lycos Inc. (LCOS) operations Tuesday morning "had to be a trigger" to intensify the selloff in Internet stocks. The Nasdaq Composite Index slipped 94.13, or 3.9%, to close at 2310.7. Pluckhahn argued, though, that investors unfairly lumped Aware, of Bedford, Mass., in with companies like Lycos, which provide Internet content. Unlike Internet content companies, Aware makes digital Internet access equipment that investors can value based on comparisons with established companies such as Tellabs Inc. (TLAB), Pluckhahn said. Pluckhahn said Aware's new digital local loop should reach "explosive" growth levels in two years. Some analysts said short-term concerns drove Aware's fall Tuesday. "It seems that money is switching out of technology and getting into more stable companies," said Hornblower & Weeks analyst John Rooney. Aware Chief Financial Officer Richard Moberg said it was fair to classify the company as an Internet stock because its technology makes Internet use more robust. Moberg added that there is nothing about the business to justify the share price drop Tuesday. "We're caught up in what's happening with a bunch of other stocks," Moberg said. Aware closed down 5.2%, or 1 3/4, at 31 7/8, on volume of 1.6 million, compared with average daily volume of 731,200. The stock has traded as high as 44 1/2 and as low as 4 1/4 in the past 52 weeks. -By Alec Appelbaum; 201-938-5172