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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 92.72+5.2%3:59 PM EST

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To: Dave B who wrote (15594)2/14/1999 6:56:00 PM
From: Gary Wisdom  Read Replies (1) of 93625
 
Stop it. Just stop it now.

Where's your perspective? (Not targetted to you, Dave)

Let's say Intel comes out with their 600 Mhz chip and it requires RDRAM to get full speed out of the chip. Ok, let's say that the 800 Mhz is the first chip that absolutely requires RDRAM to exploit the power of the chip. Doesn't matter.

Let's say that the incremental cost of upgrading from a 450 to a 600 is $100. And, let's say that the cost of upgrading the RAM to RDRAM is another $150.

THEN THE TRUE COST OF UPGRADING TO THE 600 IS $250. PERIOD.

In marketing parlance, there's a segment of the market called "early adopters". These people have always, and will continue to always, buy the leading edge in technology.

And they will buy systems with RDRAM.

Dell, Compaq, Gateway et al. are all looking for ways to differentiate themselves to the marketplace. All of the box makers are dying to have an ample supply of RDRAM, no matter what speed it is.

If you build it, they will come. Period.

Stop freaking over the short term fluctuations in the price of Rambus stock. If you are that concerned, sell it now.

However, IMHO, that would be just foolish. What you sell now for $75 will definitely cost you over $300 at most 2 years from now.

Your choice.
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