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

To: Hal Campbell who wrote (3570)	10/7/1998 1:13:00 PM
From: Glenn Perry	Read Replies (1) \| Respond to of 17679

Thanks for the explanation, now I understand. >>>...there is not a single truly revered, high end analogue deck out there that I know of.<<< What about Studer Revox? Or Nakamichi? Or how about this for a high-end analog tape deck: cgi.ebay.com I agree with what your saying - there are people obsessed with perfection, willing to pay an extra $20,000 for a THD reduction of .005%. I read an article once in Audio Magazine about how they arc-welded steel plates together using a Mark Levinson solid state amplifier that retailed for over $5,000. They made some minor modifications to circumvent the overload protection circuit, but basically amplified a certain frequency to do it. Now why would that help justify spending the money for this piece of audio gear? You'd break your back trying to lift one up, they weigh over 60 lbs. Oh yeah, if your want stereo, you'll have to buy two. Won't we be needing digital VCR's someday?

To: Hal Campbell who wrote (3570)	10/7/1998 2:18:00 PM
From: ACV	Read Replies (2) \| Respond to of 17679

What is it that propels companies to explosive growth? I believe it is a combination of having excellent products which address growing markets, an outstanding pipeline of products, excellent fiscal management, and a management with a clear growth strategy for the company. Of these success factors, Ampex appears only to have excellent fiscal management. The existing core products (DST, DCT, DCI) address either slowly growing niches, or stagnant or declining markets. It seems that Ampex engineering is not being refocused on new, more promising product areas, but has become a sustaining organization dedicated to stagnant products. There appears to be no significant pipeline of new products that will address high growth areas coming out of Redwood City. Mr. Bramson is attempting to purchase companies that can provide Ampex with products and pipelines of products that address growing markets. The problem is that Ampex cannot afford to buy healthy name brands in growing areas. As a result, they are forced to purchase distressed entities that have promise, but which will take time to turn around. People have been wondering about the slow pace of acquisitions. If all you can afford to buy are "fixer-uppers," how many can you reasonably deal with in parallel? Micronet products address promising markets, but, based on Micronet's financial condition, I think it will take more than a year before we see truly healthy growth rates. Micronet only did $11 Million in business during the first 6 months of this year. Anyone think they can double that during the second half of the year?? I didn't think so. Trouble is, for Ampex's top line to show healthy growth (> 20%), Micronet will need to ramp sales spectacularly. Even if Micronet turns profitable in the next quarter, I don't believe they can grow revenue fast enough to significantly offset the stagnation or declines in other areas. In short, I'm concerned that Ed's strategy at best will begin to pay off in late 1999 and we won't see significant positive stock price movement in the interim. IMHO we won't see any major news this fall that would cause any kind of sustained upward price spike. We may see some hints in the quarterly report that there is some progress making Micronet profitable with perhaps some forward top line growth. However, Ampex's third quarter has historically been weak, and I suspect that plus tax loss selling in the next month or two will cause a dip in the price below $1. I have been holding and averaging down Ampex shares for the better part of two years. Based on where I see the company heading in the next year or two, it seems like it may be a good idea to sell, even at these prices. Evidence to the contrary would be welcome. Thanks, ACV