Bramson was the sole owner of NHI, so he used to own 81% of Ampex. The stock IPOed on the NASDAQ at $8 and went to ~$0.75 on the pink sheets, then to over $15 bucks, so you are right, pick a slice of time and you are either a big winner, big loser or a long term holder who bought the IPO at $8 and is down 21%.
I somewhat agree with your Jubimer post, but margin selling could well push the stock below $5.00, at which point most brokers will not margin stock, thus setting up a steep slide to who knows what bottom price. Since margin buying is most prevalent with individual investors, and since everyone and all their relatives have bought, there very well could be a steep slide.
As far as the increasingly favorable fundementals, I completely agree.
Is this enough to stop the downturn, I rather doubt it. It will take fundemental news so compelling that big buyers want to move into a somewhat illiquid stock. Certainly a big settlement on a patent award seems at this point the only likely big news that could boost the stock.
Is KM going to push the stock to above $250 per share. It sure doesn't look that way today. No one on this thread mentioned Terrastor before their announcement, nor has anyone mentioned the other technologies that disc drive companies are working on. It could be that 30% improvments are not enough, that companies like IBM/Seagate are working on 100% - 1000% improvements of their own. I don't know, but by this time everyone on the planet must have heard the Ampex story, and there is not yet a lot of big buying.
What ever the value of the stock is in the future is irrelvant to margin holders. It would be nice if there was fundemental news at the last minute to save all margin holders, but "there is no mercy on Wall Street". I do think that somewhere in the future AXC will take a run at $60 or better. And if the current bottom is $3, a new bunch of investors will be crowing that they hit a 20 bagger.
So the point of the post. Don't go throwing margin money at Ampex. |
