Aware (AWRE)

Company

"Aware is a worldwide leader in the development and marketing of intellectual property for broadband communications. We license our technology to semiconductor manufacturers that build integrated circuits based on our technology. Aware's technologies include implementations of the ITU standards for ADSL, ADSL2, ADSL2+, VDSL, and G.SHDSL. Our solutions include source code, RTL, reference designs, test chips, and bare die for MCM (multi-chip module) solutions. We also sell DSL test and development equipment and standard-compliant imaging and biometrics products." (company website)

Buy

15-Feb-05. Aware has been climbing steadily since October. After it peaked in December it pulled back, recovered, and has now broken higher on heavy volumes. The chart still looks fairly strong. The one weakness that gives me pause (see stock sales on 14-Feb) is that buying pressure (+DI line) has begun to drift lower. As I've seen with many stocks now, that can be a danger sign if it goes on too long.

Sell

23-Feb-05. Ouch, ouch, ouch! I was not surprised by the consolidation after the peak. I wasn't even too dismayed the first time AWRE fell below the 50-day moving average of 10-Mar. But I was surprised and dismayed on the Ides of March (15th) when AWRE relapsed and then just followed the lower Bollinger band down to the 200-day moving average this week. When it broke below that, I gave up all hope and bailed.