Gee Mary Beth, I hope you have the same luck with Ampex as you've had with IOM, JLGI and PRST!
With regard to the growth potential for AXC, I have picked up 100 contracts for April calls because I feel that we are going to start hearing many great business developments coming out of Ampex in the first few months of 1997. Ampex has made it clear that they are negotiating KM contracts with more than one potential customer. IMO, I cannot see them signing any kind of exclusive supply agreement, but if they did, it would be with a very large player, and would command excellent profit margins. What I do think will happen is that Ampex will enter into agreements in such a way that allows them to expand into the broader market. We'll hear the first contract announcement which will have some level of positive impact on the price. Then we'll hear another shortly thereafter as I don't think any of the inductive head drive mfr's will want to be left behind. (As Gus pointed out in an earlier post, why would a customer buy a 1 gig drive when a 1.3 gig drive is available for just a few bucks more?)
Later we'll hear about new developments in the use of KM with MR, a settlement of the Mitsubishi case, and great strides being made in Ampex's digital storage products. In the mean time, the number crunchers will begin putting some estimates together and come to realize what a tremendous impact KM will have on revenues on top of Ampex's other growing business's. I honestly believe that by the end of 1997, we'll see AT LEAST the $30 price predicted by the Red Chip Review and others.
Best of Luck to all, and Happy Holidays! |
