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No doubt that IOMG sells much more product than does AXC, and AXC at its present levels just may be fully valued viewed in the fact that at this time, the "Keepered Media" concept has not been bought by any drive manufactures. However, one thing that you have to keep in mind when viewing AXC, is that all revenues are not receive from just the sale of "institutional grade" storage systems. As you may well know from your research, AXC's patent royalty income doubled over the last year. Additionally, through AXC's aggressive pursuit of patent infringement, mostly on VHS and 8mm, and enforcement of patent rights on the soon to be available consumer 6mm video format, will help furthur increase AXC revenues to new levels. I agree, don't invest hard-earned money based on hype and rumor, that's why I don't put a dime into IOMG at these levels. (See today's WSJ on IOMG) If you look at the fundamentals of each company, I think that you will find that AXC offers value with much less down-side risk than does IOMG. If, by the way, "Keepered Media" is accepted by the storage industry, I would bet that IOMG will become a big AXC customer too! |
