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

To: Hal Campbell who wrote (3732)	11/3/1998 12:29:00 AM
From: Ed Perry	Read Replies (2) \| Respond to of 17679

Some comments and a lot of guesses........................... Took another look at Mr B's letter of July 6 and at the good Count Bugula's summary of the S-4a (see yahoo axc # 1823) and there are actually only a few surprises. We were all forewarned of the declines in DCR sales and the lull in DST sales, that current product lines are unlikely to do well for the next few quarters and that the MicroNet contribution to to profits will occur "within a reasonable period of time." So far Mr. B has slipped us no canard <g>. There is also a lot of talk about acquisitions and options to buy and derivitive investments. My my, was it not the rumor of the imminent acquisition which sent AXC from 2 to 3 last January? While some of these choices may be used (what corporate entity doesn't?) I say it means less for AXC, going foward than it would for say a strictly holding company styled business. In sum, I think that talk of this nature is essentially smoke. What stands out for me is the following: from the July 6 letter :"...large systems, such as (Ampex's) ... we fully intend to capitalize on the investments we have made in our existing product lines". From other publications (not at finger tip) that select research efforts have been shut down. Finally, the surprise from the the s-4a, that the DataDock 7000 and a new to be high end product line from MircoNet will be emphasized to the detriment of MicroNets higher volume lower priced lines. From the research and the fleshing out of AXC watchers of the Imagio connection to the big Duck and the connections to venture capitalists, to me comes a hint of a long needed concerted market research, marketing and advertising initiative. Finally there is the Michael Cooper "enigma". He really is a high powered experienced and seasoned executive. However, he is currently kept largely under wraps. Here's how I think it may play out. At the moment, and for some years to come Ampex is way out in front with their DST line. However, this DST is not just a piece of digital video equipment it is also a data base and dedicated operating system as well. MicroNet can provide the middle layer of caching and networked appliances needed for large scale integrated digital video networks. Working foward, what is needed is a hosting service to obstensively provide a service business but to really implement an end to end vertically integrated new standard of digital video delivery. Of course, to make this thing fly, it will require a first class marketing effort that will push the envelop of consumption. Finally, in place will be an operations manager whose orientation and experience (and scar tissue) was acquired in the mass consumer computer peripheral market (the Gravis Pad). In a word Digital Video Television with Internet Delivery wireless cable packetized twisted copper or otherwise. Why is the WebHosting service so critical? If it were not part of the vertical integration, then Ampex and MicroNet products would be relegated to a component supplier and subject to the whims deals and slime of however current large players wish to develop these emerging markets to suit the playout of their existing capitalized investments and comfortably stumble into new ones. By Ampex having their own WebHost, Ampex can set the standard which will leapfrog whatever is currently available. A clear case of being first to market and therefore requiring the least capital expenditure. Whoever sets the standard in the most important media ever known will control the future of the broadcasting delivery business. Ergo, the sudden appearance of the entreprenurial players from Imagio and their network of business associates. So, while Ampex may have been in the audio the post-production and "prior standard" television business, tomorrow Ampex will evolve and be the standard setter of the New Media business. ********* Ladies and gentlemen, place your bets! ********* Ed Perry