SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 103.99+2.3%12:43 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: MileHigh who wrote (16028)2/19/1999 9:41:00 PM
From: Marc Schiler  Read Replies (3) of 93625
 
MileHigh,

Thanks. Thanks also for the analysis. Let's follow the last comment. If RMBS shows a growth rate of 71% it is (by rule of thumb) worth at least a PE of 71. But by your own projected earnings sequence, .30 -> 1.00 -> 2.00 -> 3.00 we see a growth rate which tapers off to 33%. Thus RMBS is worth a PE of 40 in 2001. 3.00 x 40 is $120.

Of course, this is conservative in that it completely discounts RMBS finding something else to do with their technology. One of the reasons that I am still bullish on RMBS is that I have confidence in their management. They admitted surprise at hitting 80 not long after IPO. That shows reasonable humility, in retrospect.

On the scary side: RMBS has 147 employees. RMBS has a market capitalization of 1.67 billion. That's over $10,000,000 per employee. That's a lot of confidence in what those 147 people will be generating! (Someone should check my figures.)

Having said all that, I appreciate your occasional fundamental analysis. This is what will really keep us from getting too confident or too panicky. RMBS has a steady stream of positive announcements, and no serious competition. It will climb. The only question is how much, and how rocky the ride.

Regards,

Marc
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News