Charles, Gus, and others:
Just wondering... why does anyone pick an arbitrary number like 1 7/8 for this stock and decide that this will be an "absolute low"? I recall hearing such promises at 4, 3, 2.5... Lest I get flamed for being short or trying to manipulate, let me say that I've been a shareholder since early '96. Unfortunately I added to my position in late '96; after receiving Bramson's letter, I sold all my AXC except for the original (early '96) holding, and I'm wondering why I'm even holding that.
Which brings me to my point... Bramson's gloomy letter. Why would anyone buy Ampex now, or hold onto their current shares (other than the old "they're so low, they're not worth selling" reason)? Reading Bramson's letter I was struck by four things:
1. Declining revenues
2. Lower earnings
3. Continued dependence on lawsuits to generate cash
4. Very lukewarm statements about keepered media prospects
"Lukewarm" is actually putting a bright face on the KM prospects, given industry trends and the fact that at this late stage, Bramson still can't make positive statements about his company's keepered MR progress. And let's face it: Ampex will probably survive without KM, but any hopes of it becoming a star were definitely pinned to KM.
So I ask, why should one buy, or hold, Ampex shares at this time - and why should they remain propped up at any price point, especially with year-end tax loss selling? Please don't point to Bramson's personal investments as a reason to justify ours; he hasn't impressed me with his acumen in the past. I'm not attempting to be hostile; I'm just trying to guage what the company now has going for it. Gus and others, feel free to reply.
Sincerely,
Al Youssef |
