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From the Wall Street Journal (Nov. 21, 1996)
Ampex Up 25%; Anticipation Of Keepered Media
Contract Grows
Dow Jones News Services
NEW YORK -- Shares of Ampex Corp. (AXC) climbed 26.3% amid growing investor
confidence that the company will sign a major deal by the end of the year, analysts said.
The anticipation surrounds Ampex's Keepered Media technology, which enhances a
computer hard drive's data storage capabilities.
Recently, AMEX-listed Ampex shares advanced 1 7/8 to 9 on volume of 2.7 million. Average daily volume is 389,400.
Dabney Resnick analyst Eric Appell reiterated his strong buy rating today, and in a research report said one''Keepered Media order would fundamentally change (Ampex's) operations.''
Analyst Steven Ossad, of Genesis Merchant Group Securities, said no deal has been announced, but there is an implicit
deadline of the end of the year.
Appell's report said the Redwood City, Calif., company's September 10-Q states that ''Ampex has now approached three manufacturers
of hard disk drives that have significant shares of
the desktop disk drive market to determine their interest in
commencing a commercial product incorporating Keepered Media.''
Analysts were reluctant to name specific manufacturers that might sign a deal, but some major players include
International Business Machines Corp. (IBM), Seagate Technology
Inc. (SEG) and Western Digital Corp. (WDC).
They also speculate that a Japanese firm may be considering the technology.
An Ampex spokeswoman said the data storage company doesn't comment on stock activity.
Ampex had no news to explain today's activity, she said. |
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