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Terin

04/29/12 2:08 AM

#12 RE: Terin #11

AWRE - Undervalued (Opinion)

In my opinion, AWRE is trading at an extreme discount, even after it's reason rise in price, as compared to its intrinsic value. Given the value of its biometric and DSL lines of business, along with its IP portfolio, and the fact that the company is cash laden, we should see a continued rise in price as we approach the ex-div date.

Some people (shorts) are banking on a retrace in price, which is possible. But, given a $1.15/share dividend, that equates to roughly a 19% dividend at the current share price. Dividends, especially lucrative dividends, have a tendency to bolster share price.

I believe that people will spend more time over the weekend researching the company, especially those people that couldn't catch the activity on Friday due to work, etc. Given that it hit a 5 year high during trading on Friday, along with enormous gains both share price and volume, it is certainly hitting many radar screens.

One thing is certain: assuming the current dividend is already factored into the current share price would be a false assumption given that it is still currently trading at a significant discount to its intrinsic value. Time will determine actual market sentiment, and we'll see if that is in line with company valuation.