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Be nice if there were some financial details about the deal.
Cash up front?
Royalties?
Something...
Someone emailed me this..
I asked for a link - but the site was paid subscription.
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Top stocks: controversy and turnarounds
By STEVEN HAlpern
January 5, 2005
Each year, we ask the leading financial advisers to select a single favorite stock for the coming year. We will feature their responses in this column and over the next two weeks. Although this annual report is not a contest, we note that many advisers tend to swing for the fences with their selections.
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As such, here we feature a variety of stocks recommended as controversial situations or turnaround plays. Readers are cautioned that while these particular stocks can offer above average potential, they also hold above-average risk.
Sun Microsystems (SUNW NASDAQ)
Mark Skousen, Forecasts & Strategies: "Turnaround stories have the best chance of making it big in 2005, so my stock pick for 2005 is Sun Microsystems. The stock was selling for $100 a share in the heyday of the tech boom and now is near $5. Under the able leadership of CEO Scott McNealy, Sun has revamped its product line of network computing and cut costs. Sun is expected to be profitable in 2005. Not surprisingly, there's insider buying."
Martha Stewart (MSO NYSE)
Bernie Schaeffer, The Options Advisor: "Our top pick for 2005 is Martha Stewart. Despite tripling since its lows in 2004, there are still many doubters, which could translate into future buying power. Short interest is huge, and no Wall Street analysts currently rank the stock as a buy. A combination of short covering and analysts' upgrades could propel the shares higher in 2005, even after the stock's impressive price gains in 2004."
Pfizer (PFE NYSE)
Ken Kam, Marketocracy: "My pick is Pfizer, a controversial play. We recommend the stock despite the recent negative news regarding its drug, Celebrex. I'd note that Celebrex is still a valuable drug for patients who have arthritic pain and a history of stomach problems. In addition, with Vioxx off the market, there is less competition. Meanwhile, the top stock pickers that we monitor have sharply increased their position in the stock in recent weeks."
Sony Corp. (SNE NYSE)
Richard Rhodes, The Rhodes Report: "Our single best idea for 2005 is Sony, which is a turnaround play. The stock is down from more than $150 in 2000. The acquisition of the massive MGM movie library will provide cross-marketing synergies, such as new gaming products based on several of MGM's popular titles. Meanwhile, its next generation PS3 gaming console will have music, video and Internet capabilities. This will make the box the 'centerpiece' of the family room. Like Apple Computer in 2004, we think this will be Sony's breakout year."
Cendant (CD NYSE)
Gary Alexander, SmartMoney Investor Insights: "Our top pick for 2005 is Cendant, which is involved in real estate operations, hotels and car rentals. This is a very controversial stock, following an accounting scandal in 1998. You can hear shrieks of horror from Wall Street when this stock is mentioned. Fraud was discovered by the CEO Henry Silverman, who has stayed on to 'right the ship.' Meanwhile, Silverman owns 8 million shares, so we know he wants the same thing we want as investors."
Ampex (AEXCA OTC Bulletin Board)
Mark Leibovit, VRTrader.com: "Ampex holds about 600 patents and patent applications covering digital image processing, data compression and recording technologies. The company recently reached a settlement with Sony, in which Sony will be licensed under several Ampex patents for various products, including digital video tape recorders and digital still cameras. The settlement is estimated to be worth about $40 million in cash. Although there is risk when investing in a company involved in patent litigation, we believe future earnings could drive the stock to $100."
Geron (GERN NASDAQ)
Jamie Dlugosch, The Rational Investor: "Notwithstanding the re-election of George W. Bush, stem cell research continues to power forward. My stock of the year, Geron, has 240 stem cell patents and is uniquely positioned to benefit from developments in this exciting area of medical research. Widespread coverage of the stem-cell debate negated nearly 50 percent of GERN's market cap in 2004 and offers investors a chance to scoop up shares at a discount. Earnings are negative, but are expected to show marked improvement in 2005. The company has tremendous potential. I would buy up to $9 per share. My target is $18."
Rite Aid (RAD NYSE)
Vahan Janjigian, Forbes Growth Investor: "This year I am going with Rite Aid as my top pick. With almost $17 billion in annual sales, Rite Aid is the third largest drugstore chain in the country. The stock, however, is selling for only a tenth of sales. This is because RAD is still a troubled company. It is still recovering from an accounting scandal that sent several former executives to jail. But now a new team is directing the company and trying to turn things around."
John Dessauer, Investor's World: "Rite Aid is also my top pick for 2005. The company is not the disaster the stock price implies. Rite Aid is in far better financial shape than it was a few years ago. Investor expectations are now so low that it will be very hard for Rite Aid to disappoint and very likely that we will get pleasant surprises."
(Learn more about these and other advisers at www.TheMoneyShowDigest.com or contact editor Steven Halpern at DigestEditor(at)InterShow.com.)
Right .. I read the article and still didnt make the connection.
Well if it's any Consolation Cramer and Gang were all over Taser last year and it still went up.
Hope for a repeat.
Thank you.
In what way have they showed up?
Where did you read they were involved?
Well, well, well..
I was out all day today(driving back from holidays)..
So I pulled my Bid at 38.55 before I left this morning.
I can see 35 now, maybe lower..32?
Be all over this at that range..
Would have been happy at 38.55 also..
Chap..
Thanks for posting the AXC symbol.. for Ragingbull
I see there is a Yahoo board also.
This will be my last post of the day since I am not a paid member.
Good Luck.
I would think the stock will remain in the OverBought zone for a while..
So the RSI should stay above 70 or close to it, if this run is to continue.
Going on what happened last dip out(16.50 from 22ish) 25% - 30% would be an area to enter again.
35 - 38 bucks or so.. seems hard to believe now because the stock is up - but if the stock puts in a RED day - the mood changes quick for the Johnny come latelys to enter.
But this is all a best guess since the circumstances are unusual..
Hi Chap,
RSI hit a high of 94 back Dec 6th price High 22.40, the stock then retraced to 16.50.
Currently the RSI sits at 89.75 or so(price 46.55) - I would think any where in here should be a temp high - up to 52 bucks.
When a stock moves like this with little current history the charts are almost useless at best.
But I wouldnt buy here until the stock takes a breatehr even though I think 60 is possible.
I had a buy in at 15.75 that never filled - bought back in at 23.25, cant win them all.
Never mind .. found this news piece that is the same.
http://www.computerworld.com/governmenttopics/government/legalissues/story/0,10801,97949,00.html
Artistic where did you find this news item.
All the details that I found had no mention of the Patent #.
Thanks for posting.
1. Pursuant to the two licenses, Ampex will receive payment of
approximately $11.6 million representing royalties on shipments made
prior to July 1, 2004 plus running royalties in the future based on
sales of products that utilize its digital still camera patents.
2. As part of the settlement, Ampex will receive a negotiated prepayment of
$13.5 million from one of the licensees in respect of royalties due on
sales in the period through March 2006. Accordingly, Ampex expects
that it will record at least $25.1 million of receipts from these two
licenses in its fourth quarter 2004 financial statements.
3. In return for a payment of $40.0 million, Sony will be permitted to use
Ampex patents in any of its products for the period through April
2006. After that time, the licenses provide for running royalties
based on sales of products including digital video tape recorders and
digital still cameras to the extent that they utilize Ampex patents.
license 1, Ampex will receive 11.6 Mil from licenses up to July 1/04 then
Collect a royalty from whatever sales the un mentioned company produces going forward.
License 2, Ampex will collect a lump sum that takes them to March 2006.
License 3, Ampex collects a lump sum that takes then to April 2006.
Basically as I read it, License 1 paid an up front fee and a running royalty based on sales going fwd from July 1/04.
Sony and the other un named company(Canon or Sanyo) have paid a lump sum that will take them to April/March 2006.
As of now Q4 should be huge for this tiny company.
The royalties from one of the un named companies guarantees a revenue stream
Thru Q1 and on.
Plus being it’s this late in the quarter there is a good chance remaining suits will be settled in Q1 and beyond.
I would bet Ampex decided on the lump sums in order to eliminate outstanding debt.
Using the new funds the debt has almost been paid out (15.6 mil remaining).
But subsequent contracts will have lump sums and royalty payments.
This doesn’t solve the exact royalty question but helps a bit I hope.,
Thanks Chap,
I mentioned the AMEX since that was the last exchange that AEXCA was listed on before being moved.
This has to be one of the most remarkeable come backs for any company ever.
I guess AMPEX will try to be relisted on the AMEX?
How do you even put a value on the huge number of potential patent suits that could/will be settled..
Yeee ha babies..
28.20
AMPEX - new pumper :)
First post - some might know me from YMB.
Is this the patent that Sony,Canon,Kodak and the long list of others
that is being infringed on..
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=/netahtml/search...
Would like to get an idea on what mind of technology is being used.
Thank you.