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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: Ibexx who wrote (2382)11/20/1997 8:52:00 PM
From: dougjn  Read Replies (1) of 93625
 
Ibexx..great post. BTW, Logic of H&Q princing model suggests $85 NOW.
That is, assuming the logic you laid out is what H&Q used....if one discounts forward 2001 earnings (from viewpoint of end of 2000) back not 2 years, to sometime 6-12 months from now, but 3 years, to NOW, at the greater certainty 20% rate, get 85 now.

Actually, you assume a 20% discount rate. When I run those numbers on your estimated 155 at end of 2000, I get 108. At 25% discount I get the 100 H&Q predicted.

At 25% I get $80 NOW. Even if I use 30%, I get 71 NOW.

This baby's going higher sooner rather than later.

Regards, Doug
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