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Technology Stocks : Ampex Corporation (AEXCA)

AMPX 11.31

+4.5%

Nov 28 12:59 PM EST

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To: roger m who wrote (2990)	7/14/1998 1:26:00 AM
From: Hal Campbell	Read Replies (1) of 17679

<< I want to 'see the money'. >> Funny you should mention that , Roger. I recall you on the board and recall your dumping. But at 7? If so, good decision. Good decision in any case. KM didn't sell, or it might have not been such a good decision. The litigations will take from here to eternity. Existing product lines have nabbed some prestigious customers ( CNN, HBO, Fox etc) but are not doing really well as of yet. But the biggest change is exactly what you mention. The money. AXC had close to 40 million and borrowed another 30. They are acquiring. Their first acquisition, MicroNet, is a company with award winning products ( in a rapidly growing sector- NAS) that was losing money due to hitching their wagon to the Mac a few years ago. Micronet sales....no longer wedded strictly to the Mac .... appear to be growing again and AXC got it for a song. Looks like they will be picking up at least 30 million in annual revenue for a few million out of hand and a 1.5% dilution of shares. So their war chest is still pretty much intact and they are looking for more acquisitions. Synergistic ones .......web related visual imaging. AXC appears to be attempting to build a full service visual storage and imaging shop as Spacehab is slowly becoming a full service outer space shop. So the primary difference between now and when you owned it - other than the much lower price - is the money alright. And the key is how effectively they invest it. If all of their acquisitions are as cost effective as Micronet will probably turn out to be, AXC will end up as a pretty formidable visual imaging and storage holding company - replete with spinoffs- about the time demand for that sort of thing begins to explode. Risks still, and the air does still hold a hint of the fragrance from rough times gone by ....but you really ought to keep an eye on what they are up to. It is a new direction and one that makes sense.

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