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

To: Thure Meyer who wrote (8605)	5/20/1999 11:12:00 PM
From: Rob Palmer	Read Replies (1) \| Respond to of 17679

Thure, Thanks for your reply. <<1. Yes IPO's can raise a lot of capital these days, and as long as Ampex doesn't give up control (and strategic vision) ok. However if the company is spun out, whatever cash flow they generate will no longer be at Ampex's disposal.>> With the holding company structure, each entity can be nurtured and grow on its own and still greatly benefit the majority holder/strategic partner. Take a look at the SFE model. It may be that any positive cash flow from TVW (for example) should further develop and grow TVW, which in turn grows the holding company through portfolio appreciation. The whole idea is to get TVW, AEN, Reiter, Micronet, etc. the necessary capital and leadership to grow under the guidance of the holding company...I think! Haven't spoken with management personally. An IPO is just one way to raise capital. It may or may not be the right decision at this point. It seems to work well for most internet companies today. Most perform quite well on top of the offering price to boot. I'm sure that AXC could make sure that they didn't lose any necessary control. Again, not saying that an IPO is the right decision at this point...just responding to your initial question of why an IPO might be considered as a strategy. <<Of course if you are looking to get out with a profit and trade, then an IPO would be ideal. Just my opinion of course...>> Not me! I think holding since 1995 would classify me as a long-termer. I too am looking for steady growth for years to come. There is probably more than one approach to achieve that. Let's hope that we find the right one. Rob