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Technology Stocks : Ampex Corp: Digital Storage
AMPX 10.56-14.8%Feb 5 3:59 PM EST

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To: jonggua who wrote (339)9/26/1996 7:53:00 AM
From: Michael Brian   of 3256
 
I believe that one way or another AXC is primed for real growth. Thier DST line is very well accepted and by later this year, all support software will be fully up and running. Also, AXC's patents for digital tv and other technologies present a potential source of earnings as we move to new digital technologies.

I too believe that if if Ampex is willing to spend $3M in legal expenses against Mitsubishi, they must feel fairly confident of the potential upside. If they win, then then floodgates really will be open for royalty settlements with other companies. Just recall what happened sevral years back in the camera industry with respect to the autofocus technology. The first sued company lost hundreds of millions of dollars at trial and soon there after, all the other potential defendant companies got in line and paid up rather than go to trial.

The wild card is KM. My gut feeling is that there will be an announcement this year and that it will be a big YES. With all the testing that has been going on, with originally three and now four companies, a no answer would have already been heard. Also, that IBM is supplying test platters to me is also a plus. Maybe IBM believes that KM can work with MR Heads which would an even greater quantum leap in hard drive technology.

For now I'm holding on to my position in AXC shares. I first started following Ampex last year (May) when they were still on the pink sheets. To me AXC is a keeper!!!!!
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