Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 94.69

-0.8%

3:59 PM EST

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To: gnuman who wrote (59855)	11/2/2000 9:19:04 AM
From: Ian Anderson	Read Replies (2) of 93625

Gene, By my calculations RMBS will get 1% of $41B in royalty revenue in 2001, plus enough from controllers to take earnings before tax to $500M. $300M after tax and all expenses. I really don't see why their expenses should increase significantly. Intel warrants will likely not vest due to Intel pulling out. So that's $3 per share in 2001, with a market sector growth rate of around 15-20% per annum, and a royalty rate increase of at least 50% if DDR wins. At the absolute minimum that must be worth a PE of 25, leaving the stock significantly undervalued today.

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