I am not surprised at RMBS action today. Hell, they will probably push it close to 100 before they get done with it. Good Luck.
Hey Cowboy, you gonna mount that pony when it hits $100?
I might be tempted, but some say I have a death wish. At any rate, these short squeezes are usually shortlived, albeit painful while they last. I'm not short Rambus, but I shorted Presstek at $110 just before it went to $200, and though I ultimately made money, I paid for it in sleep. The same thing happened to me with DDIM, and again I'm in the black, but it's a nasty feeling to watch some company that you think is dogs--t keep rising at a dizzying pace. Not that RMBS is a bad company, it's probably not, but it does seem ridiculously overvalued.
On the other hand, someday people will be talking about the "Momentum Stocks of the '90s" and how some people made a fortune by being short when they cratered. So why not us? Except if we get cleaned out before the crash finally comes.
One thing about RMBS, though, escapes me. That is, what sort of revenue can RMBS expect in the future? Next year they're slated to make $0.48, but are earnings going to keep rising forever?
They have a great invention, a way to speed access to memory chips, but won't they have to come up with the next big thing after that? If everybody is paying royalties by next year or the year after, where's growth going to come from after that?
Anybody have any answers? |
