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

To: Hal Campbell who wrote (12880)	12/6/1999 10:46:00 PM
From: Ed Perry	Read Replies (2) \| Respond to of 17679

For something on "streaming" in a business context, see: informationweek.com as usual, some controversies, lots of benefits but also some costs. Through to the last page is an unexpected usage benefit and a bar chart of estimated streaming applications. It truly looks like AXC is a 2 year long term hold for full value realization. We will probably get a overvalue pop in the somewhat near term, but the full value of the streaming content business and the HDTV digital broadcast storage business is at least two years out. Also throw in the surprise KM application potential, other applications of the patent portfolio (perhaps coming sooner because of the ramp up of digital imaging in commerce and entertainment in general), very likely application in the evolving SAN market, the spin-offs of affiliates as time evolves, the effects of new acquisitions here and abroad, perhaps even some benefit from enhanced seismic recording activity in the oil exploration business (one of Ampex's important customer basis) and sundry other pluses. Also, the character of AXC is very rapidly changing. I can remember an announcement about a year ago when Ampex laid off 8 engineers. Of course, it was made to seem that the end of the company was near. Now Ampex has over a six pack of exceptionally talented and experienced people in executive positions. Recently, evidence is there that new hiring is still underway. The focus of the recent hires is commercial adaptation and market exploitation. The differences in the outlook to the earlier engineering oriented Ampex will be profound. This last point is something like the patent portfolio valuations. Since it cannot be quantified it is not valued and rarely recognized. What valuation has anyone placed on the collective efforts of the new executive talent? To simply count past revenues and then project (with growth assumptions) misses the point entirely, IMO. Until we see the full rollout of all the affiliates and the direction that iNEXTV and now ITG takes (and this could take months), we have very little to go on. Yet, we know that, in addition to share prices, something is up. Ed Perry