Wily please go to yahoo and look up the PE and Ret on Equity figures for some of your favorite companies. You will find the data under "Profile". The PE is not equal to ROE.
Also look up the book value. MSFT has a book value of $5.37/share. Per your way of evaluating stocks MSFT would be about $20.
Intel, and just about any hi tech company for that matter, will not derive a penny from their current products five years from now. Rambus will, however, because of their patents. I also sure hope that they are, just like other hi tech companies, continuing to develop more products and ideas.
Yes DRAM tech changes every few years, BUT:
The DRAM idea is about 30 years old. It has come a long way with improvements in processes, CMOS, circuit design, etc.. Most, and may be all, those improvements came at small incremental steps. The Rambus way is a major new development, and,
That DRAM's represent a bottleneck in PC's is a problem known for over 10 years. The Rambus technology, as a concept was developed about 10 years ago (may be a little less). Today 10, or so, years later you find people saying it will never work. If somebody has a major better idea today, then you may see it in 2010 in a PC. And there is a chance that better idea may come from good old Rambus.
Mohamed |
