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

To: Sean who wrote (5798)	2/24/1999 12:55:00 PM
From: Alan Cassaro	Read Replies (2) \| Respond to of 17679

Why is the stock price acting less herky jerky this week? I would guess this is "thinking man's money" starting to come in, but the volume seems too low for this more stable move upwards.... What are the crazy momentum players waiting for, bells to go off? al

To: Sean who wrote (5798)	2/24/1999 2:08:00 PM
From: Ed Perry	Read Replies (2) \| Respond to of 17679

The problem is the inefficiency of the marketplace for shares generally under 5.00/sh and in particular for shares which are "shadowed." As defined by the American Institute of Individual Investors ( aaii.org ), a shadowed stock " ... has a market value of between $50 million and $250 million .... has a relatively low level of institutional ownership - no more than 15% .... the company has had positive earnings per share for each of the last two most recent years and has five years of data available ... the company is not a financial firm" These shadowed stocks tend to become analyst orphaned, out of the limelight and thereby exhibit curious trading behavior. The discussion which takes place in this cyberspace is no substitute for the larger more far reaching media of newspaper journalism and TV and radio broadcast news. It is also not a substitute for the information links which evolve from the brokerage firm analyst recommendations to the investing public - both individual and institutional. Here is one aspect of the problem. Wh still have not been presented with a full statement of Ampex's Internet strategy. Yet there must be a clearly articulated one in place. Consider the allusions to this vision and strategy from the following press releases (key phrases are highlighted with my astericks). From the Jan. 19 announcement: "Ampex Corporation To Acquire Majority Interest In Web Services Affiliate " "This is vital to maintain quality as we expand geographically and it allows us to support and participate in * Ampex's strategy for expansion in web-related markets, ". From the Jan. 25 announcement: "TV onthe WEB(SM) Receives Strategic Investment from Ampex Corporation" "''With recent overwhelming demand for new TV onthe WEB(SM) channels, the funding from Ampex couldn't come at a better time in our growth process,'' commented Dave Gardy, Chairman and CEO of TV onthe WEB(SM) and President of Gardy McGrath. ''We are pleased to have backing from an organization with such a rich history in the development of quality video technology and such an intelligent vision for the future as it relates to Internet video applications.''" From the Feb, 2 announcement: "Ampex Appoints Communications Executive to Lead Internet Video Branding Group" "Commenting on Marione's appointment, Bramson said, ''Ray brings us the top-level consumer marketing expertise that building the team to create our Web-video brands requires. I am personally delighted to be working with Ray and I am pleased that the vision we have laid out * has attracted someone of his caliber.'' " From today's announcement: "Ampex Agrees Strategic Investment in West Coast Internet Video Provider - Aentv.com" "Drew Cummings, President and Chief Executive Officer of AENTV, said, ''The technology and capital backing from Ampex will allow us to increase our content acquisition rapidly and provide added infrastructure and marketing support for our growth. We have aggressive plans to syndicate programming to other web sites and the Ampex relationship supports these efforts. I believe that * Ampex really understands how Internet video will develop * and I look forward to working with them to achieve our mutual goals.'' " ****************************************************************** The closest we have seen to the statement of Ampex's strategy and vision was from the Jan. 19 announcement: "Ampex Corporation To Acquire Majority Interest In Web Services Affiliate " "The Company is building a marketing-oriented organization to leverage its digital image technology and expertise internally and through selected strategic investments. 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," Mr. Bramson stated, "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."" IMO, this is not enough for a financial journalist or a financial analyst to stick their necks out and scoop a lead story. That is, the risky nature of the venture is not so much in the suggested speculative business direction, but in the possibility of the reporter or analyst being wrong and thereby risk looking stupid in the process. Until this situation is clarified, we will not get the coverage we expect. However, in relatively short order, because of we cyberspace participants, available shares will continue to disappear for their use in everyday transactions. The potential effect of this is that as soon as wide dissemination of information occurs, market efficiency will prevail and prices will become instantly and fully priced. I am expecting an almost overnight jump to some much higher level sometime in the near future. Ed Perry