Gene, I think RMBS may be a good example of why big caps do better than small caps, generally. Rambus has a great story. The technology they have developed is probably going to be extremely useful and profitable. But, there is a small risk, that someone else might come up with a better, cheaper technology before they can completely capitalize on it. Obviously, other folks are seeking a solution to the same problem. Let's not debate this now. Here's the point.
No matter who creates this technology, the really big boys, ie DELL, INTC, CPQ, etc are going to profit. The technology to speed signaling internally will obsolete another generation of computers, and many businesses will again replace much of their equipment to take advantage. The software companies will be able to find ways to harness this technology to create new, barely imagined products. Score more for ORCL, MSFT, SAP, PSFT, etc.
You could make a killing on RMBS, with some risk, but INTC, MSFT, etc, IMHO are sure things.
I was thinking about this before I saw your post. Interesting that you were contemplating the same story.
All the best,
Tom |
