The Play Of The Day
08-23-99 08:10 AM EST.
Good Morning Stock Fans!
The Stock Jock's-FED PREDICTION
0.25% interest rate increase. No bias to tighten
Today's Play of the Day is: AWARE (NASDAQ:AWRE)
AWARE (NASDAQ:AWRE) was hammered on Friday, August 20, 1999, down over $3.00 on over 1 million shares trading that is more then 2 times its average 30 day volume of 554,000 shares.
There has not been any NEWS released on (NASDAQ:AWRE) to explain the recent selloff. In fact in July 23, 1999, AWARE (NASDAQ:AWRE) reported record earnings for the second quarter. Last year its second quater earnings were a loss of $0.06 cents. This year second quarter was a profit of $0.04 cents. That was the second quarter in a row that (NASDAQ:AWRE) reported record earnings.
However, since that time (NASDAQ:AWRE) has sold off of the high $50.00 rage going as low as it has been in over 6 months to $33.75 in mid afternoon trading on Friday, August 20, 1999. Stock Fans! That is a sell off in less then 1 month of over $21.25. August is a slow month but on the way down (NASDAQ:AWRE) VOLUME was much less.
The clincher to me picking (NASDAQ:AWRE) today is 2 recent filings made on the stock of (NASDAQ:AWRE). They are 10G FILING that was filed on August 10, 1999 and then a 13G FILING that was filed on August 17, 1999. The 10G FILING was by insiders to buy stock of AWARE (NASDAQ:AWRE) and the 13G is even bigger for it was filed by Fidelity Management & Research. The significance of the filing is that Fidelity owns 2,651,720 shares of AWARE (NASDAQ:AWRE) as of July 30, 1999, which is an increase of 934,320 shares since 3/31/99. Which means that the largest investor in the USA has been a very active recent buyer of AWARE (NASDAQ:AWRE), and now owns 12.4% of AWARE (NASDAQ:AWRE) shares outstanding.
That makes (NASDAQ:AWRE) a stock that has traded way down in a short period of time on less VOLUME to a more then a 6 month low an almost dead giveaway for a stock under accumulation. What that means is the Institutional Investors "The BIG BOYS" are busy buying up shares of (NASDAQ:AWRE) at much lower prices in anticipation of a BIG MOVE to the upside.
When Fidelity sold out of (NYSE:AOL) in late June 1999 it was major news! Well (NASDAQ:AWRE) is not in playing in the same league as (NYSE:AOL) so the news of Fidelity buying up shares of (NASDAQ:AWRE) on the way down recently is less main stream.
Stock Fans! It looks like a great opportunity today to buy into shares of (NASDAQ:AWRE) It looks to have a lot less risk to the downside and if I am to be wrong then I am wrong with Insiders of the stock. They obviously know it best and Fidelity the largest Institution in the USA.
Buy Area: $33.8750- $34.3750
Sell Stop: $31.93750
TARGET: $45.00 (about 10 more trading days maybe much sooner)!
"RUN THE OPTIONS!"
There is active buying in the (NASDAQ:AWRE) stock options as well. The September 1999 $40.00 CALL OPTIONS series are the most active so those are the ones I will feature here. The Symbol is (WUQ-HI) the last Ask on Friday, August 20, 1999, was $1.6250.
Have a great day!
More to come...