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

To: Hal Campbell who wrote (9357)	6/19/1999 4:16:00 PM
From: df	Read Replies (2) \| Respond to of 17679

JLYK....Long since '97 and still hold'n. Is Ampex really an Internet(nut) company ? Not according to these profiles...They were pulled up just before this entry. Where does the analyst look to search ? Michael has his finger on it: <<I can't see Ampex at this time qualifying for any kind of rating by any major brokerage, by their standards this one is off the charts risk-wise and too low priced for them to make the big bucks (except, of course, for themselves).>> Is their only criteria the risk ? Or do they search for innovation also ? They don't know where to look.... Correct me if I'm wrong, but isn't AXC is an orphan with out a correct current identity or classification. The big deal here is narrowcasting, video production and content. Betcha most still think Ampex makes tape recorders. I know this is all too simplistic, but the facts being what they are, make for Ampex to be slightly (s) ambiguous. John M says he doesn't get it. How does an analyst start coverage for a company with a confused identity (PDD)? I'm repeating myself I know, but who are WE ? If I'm wrong someone please say so. Or ban me from SI for a week. From the tech and DD aspect this is not as prime, but it is relevant to Ampex's new presence.... This is from SEC Profile that Hal supplied: STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] This is Hoover's: Want to put the information equivalent of the Library of Congress in your garage? Ampex can help. The company that first developed VCR technology operates primarily through subsidiary Ampex Data Systems making data storage equipment, instrumentation recorders, and professional video recording products. Ampex's tape drives and robotic library systems are used to store massive data sets and its digital instrumentation storage devices are geared for data collection, satellite communications, and aerospace testing. Ampex's data storage and instrumentation segment accounts for about 80% of sales. Clients range from TV postproduction facilities to the US government, and include oil and gas companies. Company Profile provided by Market Guide. Company Profile: Ampex Corporation is engaged in the design and manufacture of high performance scanning recording devices and digital image processors used for the acquisition of data at high speeds under difficult conditions and for the storage of mass computer data. For the 13 weeks ended 3/31/99, net sales fell 11% to $15M. Net loss totalled $1.9M vs. an income of $4.1M. Results reflect lower sales of instrumentation products and lower margins. Nobody has a current profile for Ampex ! This is from Quote.com: Business description - Designs, develops, produces and distributes high-performance mass data storage systems, instrumentation recorders and professional video recording products. Someone in EB's organization has to get the changes made. Ampex....TVontheWeb....AENTV....Reiters(?).... As they say in the Valley: 'Ah, Daa ! I did my DD, but it only said they make tape recorders'

To: Hal Campbell who wrote (9357)	6/19/1999 11:01:00 PM
From: Carl R.	Read Replies (1) \| Respond to of 17679

Hal, I understand the background for the issuance of the Redeemable preferred, and I have nothing but compliments for Bramson for the creative techniques that he and his associates used to keep this company in business. As for the size of the increase in float, if the $40 million in redeemable were all converted at today's price that would be 10.5 million new shares, which is much more than 1%. At $2.50 the number of shares would be 16 million. But the problem is more than the quantity. The price of a stock is determined in part by the fundamentals, and in part by a delicate balance of supply and demand for the stock. A steady issuance of stock over a 10 year period could influence that supply-demand balance in part by increasing the supply, but also in part by decreasing demand as wary investors avoid the issue. As an example, compare another of my holdings, PVAT. PVAT has been consistently profitable, and growing. It posted record sales and earnings of $.16 last quarter, yet it trades at $2 9/32. The trailing PE is now about 6.5 (or based on last quarter, 3.5). Why is it so low? Because for years they have had outstanding warrants that could be called, convertible at $2, and that served as a magnet sucking the price back to $2 whenever it ventured above $2. Even before the warrant call, the threat was enough to scare investors away, i.e. reducing demand for the stock. Now that the warrant call is over, there is still excess supply to be absorbed by the market holding the price back, but now that the "cancer" is gone, hopefully the stock someday will reach a new supply-demand equilibrium. (Before anyone runs out and buys this stock, I should add that including the dilution from the warrant call earnings last quarter would have been only $.13, and they will probably earn about $.34 in the next year, so forward PE is really closer to 7.) The point is that with all the fear in the market about issues convertible at "market price", this issue could end up affecting demand for Ampex stock as well as supply. No, the amount in any quarter is not huge. Yes, many of the owners appear to be long term investors. But the fact that shorting could occur in the month prior to redemption could lead to a self-fulfilling expectation of rising prices in the two months following redemption and falling prices in the month prior to the next redemption. Repeating this pattern every quarter for 40 quarters could make for some interesting trading opportunities, but it could also get a bit old for long term investors looking for a rising stock price. In fact the added volatility alone could scare away some potential investors. As for other net TV companies, you include BCST, but don't forget RNWK. You might also look at VDAT. Carl

To: Hal Campbell who wrote (9357)	6/20/1999 9:34:00 AM
From: wlcnyc	Read Replies (2) \| Respond to of 17679

As a rank amateur to all this I frequently use Microsoft Investor for "information." MI's Research Wizard provides comparisons between stocks in the same industry. As one who likes to see if I fool the system, I discovered how to fool the "wizard" and compare AXC, RWNK and BCST. LOL investor.msn.com Forgetting the "header" info, i.e., industry name and symbol and the "Industry Price Performance" - as near as I can tell the "figures" are correct for a simplistic comparison. Just a FYI...if you already knew this, fine....at least I learned something. Bill