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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 96.40+5.4%Dec 19 9:30 AM EST

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To: GVTucker who wrote (46888)7/10/2000 5:05:18 PM
From: KeepItSimple  Read Replies (1) of 93625
 
>To me, they were decidedly avoiding any statement about
future stock grants.

Rambus is one gigantic crock anyway. Their patents are considered nothing more than blackmail by anyone with even half a clue, basically copied from a conference and then submitted to the patent office in violation of the conference rules. A giant company of leeches, and nothing more.

And everyone KNOWS that rambus pays off big customers with fat juicy warrants of Rambus stock. Due to an absurd accounting rule in the US, this allows rambus to literally give away hundreds of millions of dollars to entice companies to "license" their patents. None of those hundreds of millions in Rambus stock given away shows up on the bottom line. Not a single cent. The only place it shows up is in existing shareholder dilution, but who cares about that anymore anyway? Rambus does this because Rambus executives knows one thing- they can retire fat and rich by selling Rambus stock, but they'll never retire fat and rich by selling their pathetic "product."

So their stock is ultimately their greatest weapon. They convince various manufacturers to "wink wink, nudge nudge" license their patents, and in return Rambus gifts hundreds of millions in Rambus stock to those manufacturers. Far exceeding any license fees those manufacturers have to pay to Rambus. And then there's always the old "give the chips away for free" to Sony in order to provide SOMETHING to put in your press releases, since nobody in the PC world wants to use your crap.

So rambus goes along paying 2 dollars in stock for ever dollar in actual revenue they're getting. So what? That's what every other half baked internet company on earth has been doing for the last 3 years. The point of the game is to keep bagholder..er SHAREHOLDERS guessing until your insider options vest. After that, who cares?
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