Anyone who is dumb enough to hold RMBS stock after today's destruction deserves to lose every penny they have. It's not just Tom's Hardware that says RDRAM is a joke, it's the entire world. I expect we'll shortly find out how much of a bribe RMBS paid sony to use RDRAM in the playstation 2. this stock is a total distaster, and I have initiated a short position that I intend to ride down until RMBS declares bankruptcy. Their bread and butter is gone. Their technology is a complicated joke, and if it weren't for intel trying to keep their venture capital investment in them from becoming worthless, RMBS would already have disappeared from the face of the earth.
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A final thought to ponder is that while Intel will apparently supply the microprocessors for Microsoft's X-Box, this game console is listed by several sources as containing not RDRAM, but DDR SDRAM instead! If true, this is remarkable. RDRAM is probably best suited for game consoles since many manufacturing problems can be avoided simply due to the small amount of memory used in these systems. The X-Box is designed to use 64 MB of memory. Currently the cost for 64 MB of RDRAM is nearly $400, which is twice the price of an entire X-Box. Apparently Microsoft does not have confidence that RDRAM is worth the gamble. From our tests, we have to agree with Microsoft.
As mentioned in the recent article, "A Titan Falls," the outlook for Rambus and RDRAM is not good. Despite the meteoric rise of Rambus's stock price the last few months, there is little evidence to indicate that RDRAM, the heart and soul of Rambus, Inc., will achieve any significant level of success in the foreseeable future. Given Thomas Pabst's latest tests showing that RDRAM actually degrades system performance while doubling the system price, from our vantage point Rambus does not have much to recommend it.
It may be time for loyal Rambus investors to think about investing in parachutes as well. |
