SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 101.61+2.8%Dec 5 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ian Anderson who wrote (29050)9/9/1999 1:38:00 PM
From: Tom Pulley  Read Replies (1) of 93625
 
Ian, good question and if only we could predict what the PE will be in 2002. My guess is that RMBS will be able to project 25-35% growth beyond 2002. The dram market over the long term should continue to grow 15-20% and RMBS should be along for the ride. Additionally, these are smart guys who hopefully can leverage their technology and patents into additional earnings. This is possible through new applications (Unclewest speaks of telecommunications). It may also be possible through slowly increasing average royalty as they upgrade the technology with new patents and more companies have to use their "standard". And of course, they will be generating lots of cash and can grow through acquisitions.

So, if the market projects 25-35% growth beyond 2002, a company with exceptional margins and virtually no capital requirements should command a PE of 40-50. That puts the stock price in 2002 at 400-500. Of course who knows, these days when a stocks entire capitalization trades every 20 days or so, there may be enough excitement to drive the price up close to 1000. That would be OK too.

But first things first, I'll feel more comfortable when Dell and Compaq are selling Rambus machines in quantity and the supply of DRAMS are there.

Tom
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News