Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 101.61

+2.8%

Dec 5 9:30 AM EST

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To: Wiski1313 who wrote (3314)	3/21/1998 3:24:00 PM
From: HerbVic	Read Replies (1) of 93625

>>How will an industry slowdown will effect Rambus..We shall see. << I don't perceive it as an industry slow down. The trouble in the sector is an inventory quagmire brought on by overly optimistic expectations of increased box sales inversely tracking lower prices. The problem is that the PC market is not as elastic as predicted. Instead of lower prices producing a corresponding increase in unit volume, it is lower prices producing a weak increase in unit volume thereby eroding margins. IMHO, Rambus is in the same position as Microsoft during this price squeezing frenzy to correct inventory overruns. Wall Street seems to have not caught on yet, but revenues here should get a boost over the near term. If there is a downside in this for Rambus, it is the potential for these firesales to burn future PC market oxygen causing a vacuum in demand late in the year going into 1999. Interesting though that AAPL, as yet, has not experienced inventory buildup. Does anyone know about Dell? I understand that their tight flow through system is serving them well. Good hunting, HerbVic

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