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J.M. Dutton & Associates Announces Investment Opinion: Ampex Corporation Upgraded to Strong Buy Rating By Dutton & Associates

Posted on: Wednesday, 19 January 2005, 12:00 CST

J.M. Dutton & Associates continues its coverage of Ampex Corporation (OTCBB:AEXCA), upgrading its rating to Strong Buy and establishing a $77.28 price target. The 21-page report by J.M. Dutton senior analyst Richard W. West, CFA, is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and other leading financial portals.

We initiated coverage of Ampex with a research note and a Buy rating on December 2, 2004, and are issuing today our initial report with the rating upgrade and setting our price target. Ampex has an active, aggressive, and currently successful program of licensing its intellectual property, especially its patented digital still camera technology. Ampex announced after the end of the Q3 2004 that Canon Inc. and Sanyo Electric Co. Ltd. entered into separate license agreements for the use of Ampex's patents in the manufacture and sale of digital still cameras. Ampex announced on November 29, 2004, the settlement of patent litigation with Sony, and began litigation against Eastman Kodak in October 2004. Ampex expects to receive $65.0 million, or approximately $18.00 per share from Canon, Sanyo, and Sony in Q4, as well as ongoing royalties. Ampex is in discussion with a number of other manufacturers of digital still cameras and expects to announce additional agreements within 90 days. However, Ampex may institute additional litigation to enforce its patents if it is not able to conclude licenses on acceptable terms. Ampex's patent portfolio of over 600 patents receives no recognition on its balance sheet. Ampex's potential for further patent settlements was acknowledged by investors as evidenced by the recent stock move to a high of $50.75. The stock subsequently pulled back and we believe that, at the current level, these shares could provide investors with above average capital gain potential with limited downside risk.

About Dutton & Associates

Dutton & Associates is one of the largest independent investment research firms in the U.S. Its 29 senior analysts are primarily CFAs, and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 85 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $33,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $33,000 from the Company for 4 quarterly Research Reports with coverage commencing on 12/02/2004. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

Source: Business Wire

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