Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 113.83

-6.4%

Jan 30 9:30 AM EST

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To: Dave B who wrote (15725)	2/17/1999 11:58:00 PM
From: RetiredNow	Read Replies (1) of 93625

O.K. everyone, it's prediction time: I read in a report that RMBS is estimated to capture 8% of the $40 billion DRAM market by YE 1999. That's $3.2 billion. Multiply that by 1.5% royalty fee and you get $48 million. Now RMBS has revenues (which are not DRAM related) of $39 million for the last 12 months. So assuming that they retain that level of non-DRAM revenues, add in the extra $48 million for DRAM related royalties, and you get $87 million in revenues. That's more than twice last year's figures. Multiplying that by a very conservative 10% net margin will get you $8.7 million to the bottom line. Divide that by 23 million o/s shares and you get $.38 EPS for YE 1999. Multiply that by 250 PE and you get $95 per share. That would give you a 40% return from now to 12/99. Put that in your pipe and smoke it. I have an equal amount of shares at $45, $56, & $75. Tomorrow I add more at circa $65. I have a hole in that range that needs to be filled. ;>

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