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Technology Stocks : Ampex Corporation (AEXCA)
AMPX 10.80+6.8%3:59 PM EST

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To: Zeev Hed who wrote (8864)5/28/1999 11:05:00 PM
From: Carl R.  Read Replies (1) of 17679
 
Zeev since Gardy McGrath is a production house, and last year production revenue was $4 million while TVoW revenue was $750,000 my understanding is that the underwriter pays a fixed underwriting fee which covers the hosting cost, and any production expense. Remember TVoW has been traditionally profitable, and they are now charging more per month than they used to.

I assume that the costs borne by TVoW are development costs for new features, administration, advertising sales, etc. I believe that as they have been scaling up the operation in size they are now slightly unprofitable, but that by year end they will be profitable again. This in my opinion is a web business model that works, which is why I like it.

Did you get out of RMBS in time? Unfortunately I didn't ever get around to shorting it, an extraordinary opportunity missed.

Carl
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