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

To: K.Martin who wrote (4548)	1/19/1999 12:17:00 PM
From: Ed Perry	Read Replies (4) \| Respond to of 17679

Some observations from the announcement: First, there was an information leak which probably began in December. In fact, during the last week, several posters on Yahoo AXC were claiming foreknowledge of something about to be announced. News is in contradiction to what Karen was said to have spoken of just two weeks ago. I did not see Imagio's name attached to the release and the announcement occurred during market trading hours. It looks like it had to be published post haste. Clues which I key off on: Per Carl Reiter: "...support and participate in Ampex's strategy for expansion in web-related markets." Per Ed Bramson: ''Associating with Carl and his talented team brings us a key capability for building our presence in the web-based market area." [... and ... ] :...The company's goal is to develop integrated audio, video, and electronic commerce offerings for delivery over the world wide web. ''By establishing an early market presence in broadband web applications,'' ..... ''we are positioning ourselves to expand the range, content and quality of our offerings in line with future increases in the availability of high-speed Internet access.'' [In the above, please note the emphasis on "early market presence" and the "future increases" clauses.] How Ampex is positioning itself: "Ampex Corp., a pioneer in audio, digital video and digital image processing, has participated in the evolution of the Internet since the origins of the system in the 1980s. The company is building a marketing-oriented organization to leverage its digital image technology and expertise internally and through selected strategic investments. " [In the above, note the emphasis on "technology and expertise internally" and "strategic investments ... [externally]" Now for the downside: "Terms of the Reiter Associates investment were not disclosed. " [... and ...] . If Ampex's strategy for the development of world wide web-based activities is implemented, it is likely that significant expenses would be incurred which could cause the company to report material losses in future periods. Such losses could negatively affect the price of the company's securities in future periods and could require it to obtain additional capital, which may be unavailable on satisfactory terms or at all. Looks like Ampex will need either more sales, more debt or more equity. Counterpoint to this is excellent timing of the announcement. There is sufficient Internet investment momentum sentiment, that a well crafted advertising and public marketing plan may offset the perhaps dreadful financial reports. In sum, it appears that Ampex has been borne again this time as an "Internet backbone" company and an associate in the "web-based market area" ... of young, innovative compani[es]." Ed Perry

To: K.Martin who wrote (4548)	1/19/1999 12:26:00 PM
From: Ed Perry	Respond to of 17679

<<< two seasoned proven high tech performers >>> Good point. We probably may see other performers being brought in as well. New additions could become customers as well as associates or outright acquisitions. Apmex provides equipment and "know how" and, also a very extremely valuable component to new high tech ventures, name cachet, historical presence and financial expertise. Ed Perry