It was obvious that from the lack of upward price movement on AXC over the last couple of trading days since the take-over romer was announced, that investors just didn't buy-off on the Business Week article. Oh sure, AXC just may be in such a position to be aquired by another company, but so are many other companies as well. Until you hear specifically that company "XYZ" is going to make a bid for company AXC (or if Dan Dorfman open his mouth on the subject), AXC investors are not ready to snap-up shares at just any price. I do feel though that based on the high quality of AXC's management, book value, royality income, it's rich 52-year history, and unique product line that addresses solutions for storage of visual information, easily justifies it's current price.
Barring a take-over attempt, I would expect the stock price to level out in the $10 to $12 range until more information is released on the acceptance of "Keepered" media. Of course, if just one of the drive manufacturers buys-off on Keepered media, every other drive manufacturer will have to buy off on it too just to remain competitive. Even if keepered media never makes it to market, I would expect the stock to rise from these current levels on the fundamentials alone.
I've owned a "bunch" of AXC since it was listed on the Pink-Sheets, buying between 2-3/8 and 3-1/8. I continue to hold these shares as well as picking up more at 5-1/2, and will continue to accumulate shares when it drops below 10. I feel AXC is one of the few issues that is still attractive to the "value" investor (low down-side risk) as well as speculative growth investor (high up-side potential). |
