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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 88.13+1.0%Nov 21 9:30 AM EST
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To: Don Green who wrote (15722)2/17/1999 11:34:00 PM
From: Dave B  Read Replies (2) of 93625
 
Supply and demand, Don; supply and demand. Not everyone focuses on PE. Some look at charts, some look at fundamentals. Some just look at what everyone else is buying. Some really do look at crystals. Some look at risk/reward. Potential. It's never, ever going to rational. There's no such thing as "acceptable".

Personally, I'm a risk/reward and business model kind of guy. I see fairly low risk here and a ton of possible reward. I see a company with a good management team and an 80,000 pound gorilla in their corner. So I'm willing to buy at $70 (PE 250) because I believe that earnings will be much, much larger and that many other people are going to want to pay much, much more for it later. And I don't believe the price is going to go down to $30. I may be wrong -- I'm old friends with Mr. Mistake. But if I'm wrong I'll keep buying. These guys are going to be winners.

When you find someone who will sell their RMBS to you for $30, then go for it if that's what you want to pay. But at least through the end of this week, everyone probably wants more for it than that. Who knows after next week?? Risk may be much greater. Good luck.

Dave B

p.s. The PE will come down, though. I figure when the hit $10/share earnings, the stock price definitely won't be over $1000 (PE=100). <VBG>
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