Rambus (RMBS) - Eagle or Penguin Message Board

STOCKTALK

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 105.01

-5.1%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: unclewest who wrote (30081)	9/21/1999 11:54:00 AM
From: FLSTF97	Read Replies (1) of 93625

Oops, originally I had assume a net profit margin equal to today's gross margin but typed in the 75%. The 10x is due to the fact that what was once an extreme growth rate just slammed into the ceiling (based on the assumptions taken). So I would think that you could almost value the stock like a bond or more mature company with slower growth rates or a utility company. Let's just say that they pay out all the earnings each year and that that equates to $20 per share. What would you pay for such a share? It has some upside potential due to market growth of which you own 100%. Some (although slight until patents lapse) risk that you can be displaced by new technology. At that point it almost starts to look like very much like a commercial bond, doesn't it? That's my rational, but I'm more interested in finding other thoughts that support why the PE should be 20 or 50 or? Thanks for your inputs

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next