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

To: Ed Perry who wrote (3784)	11/10/1998 3:06:00 AM
From: Hal Campbell	Read Replies (1) \| Respond to of 17679

I guess that now the sanest advice might be to sell and be willing to step back in quickly if developments warrant that. Thus eliminate much of the risk and still grab a good chunk of the upside if it begins to occur. But though I am certainly no technician, intuitively Ed seems to be correct. I have never seen it base quite like this before. I am wondering who is in fact buying. I sure can understand the selling. While they compete with mammoths, it is nice to know that AXC doesn't have to be all that successful to survive - even prosper a bit- in the food chain. Lets assume for a moment that management has been even more honest and forthright than we had hoped. Due to share price and cash flow ...for now...acquiring is out of the question. The only new products on tap are the new DCR, the LV datadock, and the new RAID line from MicroNet in the first quarter. That they remain simply a storage company with a royalty stream on the side. Well, if done correctly that ain't all bad. At one time DST sales were doubling year over year( albeit from a low level ) ....they know how to sell them - they just ran out of people who needed them. Now new markets are arising ...they have a more complete line to offer.......sales may actually pick back up. The next quarter might be pretty telling in that regard . Micronet may do alright. Perhaps better than alright in time. DCR - their new recorder has certain unique features - may snap back a bit too. The royalty stream may also catch a pop next year , when certain old deals involving suspension of payments for one time sums, expire. So if they can simply get what we know they have to stabilize and grow again for a few consecutive quarters .....AXC will at least be back in the 3s again within a year, I would think. Wouldn't take all that much. But as we all know, it will take something. BTW , as Steve Leahy pointed out some time ago ,the OEM - 19mm alliance AXC had several years ago that Ampex ended ( thinking they could sell them better - with higher margins of course - themselves ) was with IBM.