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Technology Stocks : Ampex Corp: Digital Storage
AMPX 7.887+0.7%Dec 31 3:59 PM EST
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To: K.Martin who wrote (1549)1/30/1997 2:41:00 PM
From: Stephen W. Leahy   of 3256
 
K Martin:

Great initials for you to own this stock - KM !!!

On the contrary, it is in Maxtor's interest to keep quiet about its use of KM. Since Maxtor is wholly owned by Hyundai and has no publicly traded stock they have no reason to hype the use of KM.

For competitive reasons vs. Seagate, WDC and Quantum, it is better for Maxtor to low-key KM. When their new products with KM are ready for marketing later this year they will go to Compaq and others and try to sell the new drives. Compaq doesn't particularly care if you use KM or snake oil, as long as you meet the specs, price and can qualify the drive.

If Maxtor thinks KM is great there is no reason for them to alert their competitors. Maxtor sees a competitive advantage with KM and wants to retain that advantage as long as possible.

Ampex by the same reasoning is prevented from publicly disclosing Maxtor's product plans. That is one of the problems with AXC's stock price right now, neither AXC nor Maxtor is hyping KM. The lack of information is making investors nervous, but for those of us who have owned AXC for a long time, this is the way things are with AXC. I view this as a sign of confidence and professionalism on Mr. Bramson's part.
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