Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 91.18

-4.3%

3:59 PM EST

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To: Dave B who wrote (14798)	1/30/1999 11:27:00 PM
From: Tom Pulley	Read Replies (1) of 93625

Future Earnings? Rambus' success has quite a bit less risk than 6 months ago from everything I've read. So, I am ready to start to buy, but I need some help in forecasting future earnings. Can someone tell me what the royalty is on the deals they are making. Is it a fixed percentage of sales (if so what percentage) or is it a price per chip? Also, since they could have a commanding position for years and years, do the deals they are doing have fixed terms or price adjustments down the road? One can make highside and lowside assumptions on PC sales growth, memory market size in 5 years, market share, etc.; but the short term and longterm license fee has a big impact on earnings and I haven't seen information on that yet. This may be common knowledge to this thread, so excuse me if I am requesting information that has been posted in the past. By the way, as someone who has not followed the stock closely and certainly not on a day to day basis, the chart doesn't look that bad to me. Lets face it, stocks with PE's of 300 are going to be very volatile on the slightest news. This looks like a normal correction for a high PE stock and I'm guessing it will prove to be a good buying opportunity if you have a 2-3 year time frame. Tom

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