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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 99.25+1.2%11:19 AM EST
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To: Steve Lee who wrote (46719)7/8/2000 12:08:10 PM
From: Dan3  Read Replies (2) of 93625
 
Re: How the FU*K r u sposed to build a decent server out of that?

Settle down, Steve. If you're this wound up over your investment, you should probably be in mutual funds instead of equities.

RDRAM the technology is not doing as well as expected. Rambus inc. the company pulled a rabbit out of its hat in the form of the amended patent applications. So Rambus continues to have a chance at future earnings of a large size. The courts are very hard to predict.

But this stock has turned into a real crapshoot - if rambus can convince a series of courts (I would guess any decision will be appealed by one side or the other) of the validity of its claims, its stock price will go even higher than it is now. But any loss in court would hit the stock pretty hard.

Right now the stock is priced at 600 times revenues and 1,800 times earnings. And that's with the Nintendo and PS2 programs doing pretty well. As game machines move to embedded RAM, network switches will replace them to provide similar or somewhat larger revenues. But I'd guess 10 times current revenue is about the best that can ever be expected. And in Q1 of next year when Willamette moves out of rambus, total revenue will probably take a big hit.

But if Rambus can win that lawsuit, it'll be worth at least what it's selling for now.

Dan
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