In the RMBS story, PE is probably the single most important factor determining the profitability of any long term play
i agree with that 100%. on the surface, the current high pe seems lofty, and i do not expect it to be maintained forever. there is only one reason rmbs pe stays high. rmbs has enormous potential to be wildly successful in establishing earnings and that success could all happen over the next 12-18 months. the market recognizes that and assigns a pe accordingly.
- not the endless parade of small design wins wins and test equipment announcements Unclewest likes to trot out.
where do you expect the "e" to come from...if not from design wins? as a long, i am personally delighted by the endless parade of rambus enabled product announcements and design wins.
rich,
you are right some of the design wins are small but their number is increasing. the announcements re. rambus in timna, camino, coppermine, servers, sony pII, desktops, laptops, workstations, servers, etc., are quite important and very significant to the future pe.
test equipment does not contribute to royalties. since it is very expensive, tracking these orders is just another way to guage dram mfr committment and capacity.
the other item that i track and post is announced rdram production. you know, 5 million a month here, 200,000 a month there, 1 million over there, 2 million in the corner, 3 million next door, 6 million more next quarter. before you know it, we have another method of calculating the probable success and future pe.
unclewest |
