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Technology Stocks : RAMBUS (Nasdaq: RMBS) - THE EAGLE
RMBS 115.18-7.7%Jan 23 9:30 AM EST

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To: Orion who wrote (562)1/8/2000 10:11:00 AM
From: RetiredNow  Read Replies (3) of 2039
 
Orion, never say never. I thought Qualcomm's rise was pretty riduculous too. But people are saying that CDMA will take over the world, which means that every cell phone in the world sold will mean revenue for Qualcomm. While I don't believe this hype, because I know there are other big players in the market, like Lucent for one, this type of hype took Qualcomm up 2000% in one year.

So what if we have a scenario where Rambus starts announcing that they have licenced their technology to the communications companies like Broadcomm, to the folks who make HDTV's like Phillips, and to the folks that make cell phones, like Ericcson and Sony? Then what we have is a situation where Rambus could conceivably collect hundreds of millions of dollars overnight from many different directions. Then the hype begins and the next thing you know your $1000 investment is $200,000.

Don't think for a minute I believe either Qualcomm right now or Rambus in the above scenario would be actually worth the valuations that the market would give it. But I do believe that we are in a market dominated by very unsophisticated, superstitious, and gullible investors who will take a stock to ridiculous levels on the merest hint of potential. So good luck to all, may we all be prosperous whatever we do!
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