Dutton Associates Announces Investment Opinion: Ampex Strong Buy Rating Maintained in Update by Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)----Dutton Associates issues its updated coverage of Ampex Corporation (OTCBB:AEXCA) maintaining a Strong Buy rating and raises its price target to $82.50. The 15-page report by Dutton senior analyst Richard W. West, CFA is available at www.jmdutton.com, and from First Call, Bloomberg (JMDA), Zacks, Reuters, and other leading financial portals.
Ampex continues with its active, aggressive, and successful program of licensing its intellectual property. Ampex now has licensed its patents to 11 manufacturers for use in digital still cameras, camera-equipped cellular telephones, and other digital consumer products. Ampex's completed license agreements and royalties thus far relate mainly to their U.S. patent 4,821,121 (121). However, licensees will be required to pay running royalties based on a percentage of the selling price of products that they sell that incorporate other Ampex technology covered by Ampex patents. Even though patent 121 expires in April 2006, Ampex's other patents relating to the enhancement of data compression are used in a variety of digital products, including digital still cameras, camcorders, DVD recorders and camera phones. These patents have expiration dates through 2012 and 2014. Thus, annual royalties could continue after April 2006, specifically relating to additional patents 324 and 018 on not only digital still cameras, but digital camera phones, digital camcorders, and DVD recorders. We will explore the future possible royalties in this report. Ampex's portfolio of over 600 patents receives no recognition on its balance sheet. Considering our valuations by business segment contained in the report, by price earnings ratio, and by market cap to revenue basis, we are increasing our 12-month price target to $82.50 per share. Ampex applied for listing of its common stock on the NASDAQ National Market on May 2, 2005. |
