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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 106.06-0.8%3:59 PM EST

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To: sylvester80 who wrote (55635)9/28/2000 9:17:02 AM
From: GVTucker  Read Replies (2) of 93625
 
sylvester, RE: I'm sure you must know that it was a non-cash related charge (vested shares) and even actually generated positive cash flow from it.

Yes, it generated positive cash flow, but it still cost current shareholders. It is a cost current shareholders bore because RMBS had to issue that incentive to another party to help RMBS' technology. It is a legitimate expense.

If RMBS were to issue a billion warrants with a strike price of $1, it would also generate positive cash flow. That doesn't mean that it would necessarily positively impact the stock price.
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