Well, today is the day for many of us to blow off a little steam. Can't blame anyone for doing so. Those that were venting their frustrations were, IMO, reflecting the feelings the market seems to have for AXC right now: a growing lack of confidence in the hopes for KM and the growth of DST. Also, I think what we are witnessing right now is panic selling. Many TA'ers pointed to a long-term support level at around 6, which was obviously broken today prompting many to sell-out. But also, we are getting closer to the previously discussed $5 margin cut-off, scaring many others into selling.
I am guessing that this last point may be a big part of the latest sell-off. Discussions earlier on this board talked about the recent shift from instititutional ownership of AXC to individual investor. Many of these investors probably have sizeable margin positions, brought on by the Nov/Dec run-up, where they may have as low as 35% equity on their accounts. This could prompt some very large margin calls if we see a drop below $5, causing even more selling by investors needing to come up with the money to meet these calls. I fear that because of this, and the break in long-term support, that we may see ONLY IN THE SHORT TERM some ridiculous lows, that will create the most incredible of buying opportunities.
I envy those that are only now looking into AXC to buy. The prospects for this company are incredible, and to be in the position to buy at these levels is quite fortunate. Those that think that KM will not become a reality are letting the action of AXC's stock price distort their thinking. Ampex has always flooded their SEC filings with cautions (shareholder lawsuit avoidance), but if you look at what they are saying in the 10K about KM you see that:
1) Maxtor has advised Ampex that they have a program in place to produce KM drives by year-end,
2) Ampex now believes that KM may have application in flexible magnetic media, such as floppy disks and magnetic tape,
3) Ampex is expecting to ramp up expenditures for further KM development,
4) Ampex is still holding discussions with other drive manufacturers for use of KM technology, and
5) given all they know, Ampex (still) believes that KM has the potential to expand its business significantly.
This does not sound like a technology that is dead in the water.
Best of Luck to all,
--Wayne-- |
