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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 95.57+0.7%Nov 28 9:30 AM EST
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To: TEColeman who wrote (3163)2/26/1998 9:05:00 PM
From: Rachel M. Kuecks  Read Replies (2) of 93625
 
Rambus licences its techmology and gets royalties. If they were to get $1 billion in revenues then profits would be close to $550 million (assumes around $80 million in expenses). obviously the stock would be worth many times its current valuation. There are projections of 50% of the memory market which would translate into $200 to $300 million dollars in royalties by 2001. If this comes to pass then it will be a very good investment.

Note that they will also get royalties from logic chips.
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