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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Cassaro who wrote (9202)	6/15/1999 7:10:00 AM
From: Scott Pedigo	Read Replies (1) \| Respond to of 17679

I don't have any technical analysis to add, but I can say that all the long-time longs have seen these kind of swings before. Owning this stock has been GREAT for desensitizing my nerves. I have a friend, for example, who is afraid of investing in the stock market because a 10% loss (even on paper) would have him gasping and clutching at his chest (as in having a heart seizure). I have a whole different perspective, having seen AXC go below $1 and then above $6, all in the space of a few months. Nerves o' steel. If all my OTHER stock wasn't also down, I'd be dumping it now and buying more AXC. If AXC goes much lower, I may take the loss on the others and do that anyway. When it was at $1, I doubled my holdings and then doubled my money when it recovered. My Compaq stock might come back 10% to 20%, but I don't expect it to double so quickly. I think Bramson is doing things right, and we ARE going to see revenues begin to slow their decline and start to ramp up again before too long. It might be a few quarters, the real problem being that we live in Internet time, while the company lives in real time. Going by the press releases and reports released by Ampex, the feeling that I got was that the recent acquisitions (not MicroNet) were chosen at least partly because they were already making money and would help boost the revenue, although the primary reason of course is to bootstrap Ampex into a new growth market where their video expertise might be leveraged. So if no expansion of the subsidiaries were undertaken, then we would presumably see their revenue and profit help the Ampex bottom line, offset by the loss of interest which was previously being earned on the (borrowed) cash. However, one reason for the investment was to allow the subsidiaries to more rapidly expand, so they'll be using the money to hire new people, open new facilities, etc., which may cause them to operate in the red until the new facilities start bringing in revenue. But I think the payoff will come, because the business models being used were already working. Unlike, for example, Amazon.com, which has yet to make a profit and no expectation thereof in the near term. This just shows why its good to always keep some cash in reserve for a nice unexpected buying opportunity. I know that Al and a few others appreciate a good song, especially a well-known hit oldie which can be twisted to apply, so here goes: "What goes up, must come down, that Ampex price, it got to go 'round"