Ampex Corp: Digital Storage Message Board

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Technology Stocks : Ampex Corp: Digital Storage

AMPX 10.12

-1.8%

Nov 21 9:30 AM EST

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To: Ken Holbert, Jr. who wrote (1792)	2/15/1997 1:43:00 PM
From: Gus	of 3256

Re: buyout or takeover Any one of AXC's SEC filings should contain a description of the poison pill in place which, if I recall correctly, involves the issuance of 'cheap' preferred shares to make a takeover prohibitively expensive. Also, because I assume that Ampex continues to participate in some black box projects, there are Department of Defense restrictions that apply in the event of a change in ownership, especially foreign ownership. Lastly, the $99.9 million in tax loss carryovers disappear in the event of a change of control. Re: 11 to 7.625....something going on? Some of you may find it useful to look at the 1 year daily chart and track the premature rise and fall of AXC starting in May which was marked by unusually high volumes on the way up and on the way down. We don't have anywhere those kinds of volumes on this slow drift down- wards. As you know, nothing of negative consequence happened to the KM program and the DST core business in the aftermath of that sharp decline. In fact, a choppy base followed for about 3 months before the positive news about KM and double density DST started filtering out. The thing to remember is that this is an underappreciated stock which has a negative book value obscuring the steady progress of a DST core business and the increasing likelihood that its incremental but extremely cheap to manufacture KM technology will gain currency among the drive makers and become part of the evolution of the disk drive. And that is just for starters! Art Nunes laid out, for example, some of the areas that Ampex can enter more vigorously once the KM earnings settle down into a predictable flow right alongside that increasing DST cash flow and that fairly reliable royalty cash flow. While we all wish that we can find that proverbial undiscovered stock with real considerable upside the exact day before the 'street' finds out, the reality is that a considerable amount of waiting is usually required. The patience of Job wouldn't be a bad thing to have either or how else are you going to weather the wild swings in the price.

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