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

To: Swamp Fox who wrote (4697)	1/26/1999 12:24:00 AM
From: Ed Perry	Respond to of 17679

<<< For less than one U.S. Dollar you can have 19 dollars in a couple months... >>> Above from your #4104 Dec 18 98 post. When I read that one, I thought you were smokin' but now I'm not so sure. First, I am overwhelmed. So much information in 24 hours. It will take days and weeks for me and everyone else to sort out the implications announced. And, there is still more. The Reiter acquisition and how is fits is yet to be explained. More must be coming. The TVW narrowcast stressed the significant Capital infusion from Ampex several times in the broadcast. While we do not know the terms, since TVW is a successful ongoing venture, it must have been substantial. How much war chest remains is less important now than the fact that, in a relatively short time frame, say one year, some of these acquisitions could be made ready for IPO spinoffs in exchange of equity for debt yet retaining majority interest. Here is where the top heavy Ampex financial expertise will really come into play. Meanwhile, the ramped up high end narrow focused equipment line will provide a positive revenue stream and ever so important continuing earnings. Ampex is classified as being in the communications equipment sector. Three yr Avg. P/E there is 27.4 giving AXC a 7.40 valuation. However, the further Ampex moves out into broadcasting and into the Internet broadcasting business, the closer it gets into the lala sector of P/E valuations. Here, it becomes a matter of perceptions and investor expectations being priced into current valuations. Apparently, Ed Bramson has a clearly articulated Internet vision, as very emphatically underscored in the TVW narrowcast, one which we unlikely have yet seen published in its entirety. Again, there is more to come. In sum, the information shocks are still reverberating, incomplete at that and with a promise of more to come. Where the valuation will settle is unknown at this time. In looking at the AXC long range monthly chart, it was at about 5 5/8 on 6/13/97 that AXC started the long slump after the KM promise began to unravel. So 6 is a good intermediate term target for the current wave of market activity. However, the new direction that Ampex is being thrust in is infinitely more interesting and certainly more exciting in the public mind's eye than is "preventing thermal decay at high recording density." Mind you that one, with zero revenue streams, was valued at 10 to 15! Ed Perry PS: two other things I noted stressed in the TVW narrowcast were: 1) The importance of being first to market, the need to move up fast on the learning curve from experience gained, and the fact that larger hugely capitalized competitors have no advantage over a focused early adopter. 2) AXC's equipment line, with MicroNet's RAID servers underscored, were not contingent to the deal for TVW but they a good contenders for TVW's move to RAID as well as for PSI's (TVW's co-location site) upcoming hardware upgrades. More to come?