Ampex Corp. Message Board

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Technology Stocks : Ampex Corp.

AMPX 12.73

+13.1%

Nov 7 9:30 AM EST

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To: Nosaj who wrote (5424)	4/22/2008 2:12:17 PM
From: Hal Campbell	Read Replies (2) of 5839

<<Well, first of all, let's get some people with an IP background in management positions and on the board.>> Now that would be an excellent first step, Nosaj! Did I read correctly that there will be an all new board and management team if the deal clears? Modern IP background is absolutely critical. The ampex team DID have a serious real world IP background in that they had scored a ton of royalties over the years with their techniques....but the debt and Kodak legal expenses canceled most all of it out. One more score like the 121 score would have rendered the debt meaningless. We came mighty close folks. When Kodak fought though, all the other talks dried out. I am pretty sure they had expected to cut settlements with HP and others and have all the senior debt paid off by the end of the first year of the Kodak dispute...but then they amended their expectations which told me other talks had broken off (which is mainly why I sold in the first place...that plus the incredibly low volume amplifying the effect of the options selling....and there was no end in sight to that). But times have changed...particularly the legal climate...and folks with a new approach to royalty collection are definitely needed. Ampex management was indeed in a bubble from the getgo. No accountability. Close control. In my opinion, Ed did share one style with most shareholders. Swinging for the fences...going for the big score.Except for the 121 though, Ampex whiffed. Nosaj, I had that same idea about trying to get some big company to swallow the redeemables and convertibles years ago.....even proposed it. Then I slowly realized companies didn't get big by being in the habit of paying many tens of millions of dollars for 50% of maybe. If shareholders in this deal were getting 70% (instead of 50%) of excess past the new debt structure and operating costs...with collection interests in lockstep for both creditors and former shareholders.....with deep pocketed (by reputation) Hillside running the show...and thus companies they are negotiating with no longer able to look at a debt ridden public company with severely limited capital for legal expenses and fashion their strategy around that fact.....I'd buy some here. But that's just me. Those few that are buying here are taking that gamble.

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