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

To: Michael Olds who wrote (9364)	6/19/1999 6:28:00 PM
From: Hal Campbell	Read Replies (1) \| Respond to of 17679

Thanks for the overview Mike and it IS important all understand these things. Most of the convertibles seem to have been converted already , of course. I think Jubimer was probably more specifically correct ( he knows the company well).....part of the deal is to convert a little more up front ( 1.5 mil. per) for a few quarters.....lower percentage later. Thanks again to all for the posts.

To: Michael Olds who wrote (9364)	6/19/1999 11:10:00 PM
From: Carl R.	Respond to of 17679

Michael, I agree that this issue isn't sufficient to make me sell my Ampex stock (i.e. cut bait). It remains to be seen if it is sufficient to present trading opportunities on a quarterly basis (this month is thus far not inconsistent with the idea that the month before redemption will be a down month, but it is still too early to tell - though I think it may turn out that way). On the other hand, Ampex could do a single secondary (which would be supported by analyst "buy" recommendations), that would give Ampex a positive book value, and allow plenty of cash to redeem the preferred as it comes due, and even pay off the junk bonds. Alternatively an IPO of a subsidiary could also solve the problem (why not take a majority of Reiter, then IPO it, turning a quick profit?). Obviously this quarter is a done deal, but as we move forward I think that the redeemable will continue to be a shareholder issue until addressed, though hopefully not a critical one. Carl