This is Nick ( Hillbilly's) summary of the AXC annual meeting. Thanks Nick.
General Annual Meeing Info...Part 1
by: hillbilly130391301
Long-Term Sentiment: Strong Buy 05/28/02 03:00 pm
Msg: 119755 of 119784
The following information was derived from discussions during the meeting, after meeting with Mssrs. Ed Bramson, Mr. Joel Talcott, Ms. Karen Dexter and general observations.
The information will be presented in major concept form only. This forum is not condusive to a detailed presentation.
All items contained in the agenda including the
election of a director, auditor selection, announcement of perliminary vote results were passed with 91 plus % of the votes.
IMPERATIVE that everyone read the Q and K reports as information that pertains to the immediate past, present and future is contained
therein.
The ITG patent has not yet been approved. A shortage of qualified Patent Officers with the requisite knowledge slows the process. Patent Office posts information on their web site Tuesdays and Wednesdays of each week. In the search section, just type in "Ampex Corporation" and all patents awarded will be included. I did not try a search, yet. No discussion regarding what would be done with the patent(s), when approved.
R&D efforts still underway.
Re patent royalty collection:
*Some companies being negotiated are the same companies royalties have been collected in the past. Some companies being negotiated have never been the subject of royalty collection. To get a feeling for the scope, one need only look at the number of companies that advertise on the internet for digital cameras, etc. EACH company will be or has been contacted. NOTE: Someone opined in the recent past that AXC may hold so many digital patents that it would be extremely difficult to
manufacture any digital cameras, recorders, etc
withjout infringing on one or more AXC patents.
OPINION: I personally think that is the case
since they will be or have contacted all of those companies...that will also account for the time consuming efforts.
*No firm/realistic estimate given for patent income. After discussion, Mr. Bramson did say from 0 $ to 100 Million dollars indicating that the income is predicated upon their success. When asked about the probability of success expressed in percentages, he did say that the lenders for AXC debt were confident enough to loan the money and they expect to be paid. Mention was also made regarding royalty projections as that had been done in house, but could not be discussed. He also made those statements after being pushed for some range and PROBABILITY of success.
*If litigation is necessary, it will be farmed out to a law firm that specializes in such work...a firm that does that everyday for a living. There was NO reluctance to initiate
legal action, if necessary. The Mitsubishi (sp?) case cost 3 M $...the other $ spent was in defense of a counter suit. IMHO Mr. Talcott is the right man for the job...been with the company since the beginning...respected and knows how to negotiate. Sharp guy!
Discussed Medical Imaging Storage. Mr. Bramson
said that they had looked into that some time ago and if I had anything new, they would be happy to take a look at it. I presented information on 1,772 MAJOR hospitals in the US along with web site addresses. Also, presented was information on over 4,000 universities (almost 400 in Calif) that give 4 year degrees. They too have a need for large storage capability.
There was an aura of confidence exhibited by Mr. B during the meeting. He is a very knowledgable and capable man in charge of the company and he knows where it is going...IMHEO...FWIW!
Also asked about projecting the price of the stock 1 year from now as he had said that it could go to "0" last year. He would not project. Asked if it could go to "5". He said
5 cents....I said "NO"....$5 dollars. He smiled and said that "I'll buy you a drink if it does"
The recent government contract was for $3M Plus with expected revenue up to 10 years. I did not ask the projected total value of the contract.
Thanked Mr. Bramson for "purchasing" 1 M shares
of the company thereby reflecting his optomism
for the company. ( I did not know about the S2
filing at the time of the meeting....and really have no opinion of the significance of it as IMHO filing of the form only means he may sell it sometime in the future????). I also asked why the BOD had not shown the same positive outlook for the company. He stated that purchasing stock of the company is a personal choice. Apparently, he does not apply any pressure on the BOD to purchase company stock. If a director wants to buy, he/she may do so.
OPINIONS: ADS will continue to grow. Patent royalty income will not be known until the second half of the year. I believe that they know income will be significant...but also believe that they simply don't know how significant at this juncture. It just depends on how successfeul Joel T can negotiate! And, the scope of AXC patents.
At the conclusion of the meeting, Mr. thanked those in attendance and said that " I WILL see you next year" !
Hope the aforementioned info may be of assistance to you in deciding on your AXC investment.
kind regards to all
nick |
