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

To: Carl R. who wrote (9317)	6/18/1999 12:31:00 AM
From: flickerful	Read Replies (2) \| Respond to of 17679

Nevertheless, this is not a floorless convertible, which is a very, very bad thing, something that can and has destroyed many companies. well, no, it's not....t h a n k g o d. and zeev is the maven on such poison. as you note, the key is cash; or as jubimer has mentioned; a flurry of undeniably, unstoppable, market proof, slaphappy, s u b s t a n t i v e press releases which document events luxe. hmmm. think ed has an ace, or a stash, up his sleeve [s]?

To: Carl R. who wrote (9317)	6/18/1999 12:59:00 AM
From: Hal Campbell	Read Replies (1) \| Respond to of 17679

Excellent post, Carl! Sorry but I responded to Mike before I read yours. Yes, a cash redemption would be a viable powerful option BUT I have this off the wall opinion. Hypothetically...just hypothetically .... if you wanted a batch of happy debt holders ( as well as shareholders) ...and you were holding news you felt would move the maket upwards in your issue...for the FIRST redemption period only ...you would delay releasing the news ...delay formally presenting yourself to the street as a favor to debt holders..to maximize their first and first only share portion. A one time only gift ( with brownie points gained for any future services needed). Is it a coincidence that the webcast is only 2 days before June 30th? Awww but it may well be.

To: Carl R. who wrote (9317)	6/26/1999 12:55:00 PM
From: Sam Sara	Read Replies (3) \| Respond to of 17679

I would like to ask some questions to Carl R., jubimer, Zeev, or Mike re: redeemable preferred, for my own enlightenment: 1) First, and most basic, what are the differences between convertible preferred and redeemable preferred stock? In both cases, it seems that the holder has the opportunity to convert his preferred stock to common stock. 2) From financial statements: Pursuant to an agreement in the second quarter of 1998, the Company completed the redemption of the Old Preferred Stock in exchange for the following securities (a) 3,000,000 shares of its Class A Common Stock, par value $0.01 per share (the "Class A Stock"); (b) 10,000 shares of a new series of 8 Noncumulative Convertible Preferred Stock, par value $1.00, with an aggregate liquidation value of $20.0 million (the "Convertible Preferred Stock"); and (c) 21,859 shares of a new series of 8% Noncumulative Redeemable Preferred Stock, par value $1.00 per share, with an aggregate liquidation value of $43.7 million(the "Redeemable Preferred Stock"). In (b), the par value is $0.01 per share for the 10,000 shares, but the aggregate liquidation value is $20,000,000. Does the "par value" mean anything in this case- I thought that par value for preferred stock represented the price paid by the holder to the company, but this cannot be right in this instance. Is the low price paid a reflection of the fact that this is actually refinanced debt? Also, how is the liquidation value determined? Thanks in advance for any information you can provide. I am in a risk-averse mode, and sold off my net stocks, although a 10-15% correction from here would strongly tempt me to get back in. AXC is now my major holding; don't see too much downside from here. Funny to some ears, no doubt, but AXC is now one of my "safe" investments (compared to PCLN and its ilk).