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Technology Stocks : Ampex Corporation (AEXCA)
AMPX 13.15+5.7%Feb 2 3:59 PM EST
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To: Gus who wrote (1229)11/12/1997 1:04:00 AM
From: Micheal Chia  Read Replies (1) of 17679
 
This IBM annoucement of GMR heads looks like deja vu. Recall that ampex initially had a contract with maxtor to incorporate KM into inductive heads. Once KM was ready to use with the inductive heads, maxtor cancels its order and only wants to incorporate KM with MR heads.

Probably by the middle of next year, ampex will be able to incorporate KM with MR heads. Then Samsung will cancel its order and tell ampex that they are moving toward GMR heads.

I sincerely hope I am wrong about this. But it seems to me that the head technology for disk drives is moving at an incredible pace. Will ampex ever be able to catch up? I realize that Gus just stated that GMR heads will only be used in larger disk drives for now. But what if IBM finds some way to incorporate it into their smaller drives in the near future. I am not a technical expert, but I just get this feeling that we will get screwed again.

Gus, what do you think about ampex spending more of its money on reasearch to speed it up. Should they continue to work on incorporating KM with MR or start investing into KM with GMR heads? I hope someone such as IBM or Seagate will buyout ampex, maybe they'll be better at timing this technology.
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