RMBS - could be a toll booth if it isn't simply another of Intel's "silver bullets". At present it's only toll gate is on the Nintendo, which is seguing to PPC architecture. I'm willing to bet that the Intel server farms get stocked with DDR memory, not RMBS. And I fear that there are real technical issues surrounding the timing of its rollout and performance of other, cheaper solutions.
I might suggest that you look at DTM (Dataram) which is a small aftermarket memory producer from Princeton, NJ. They started as a board producer of core memory for DEC. Now they produce industry standard, technology agnostic boards for all the major brands. (Since their forte is board solutions, both RMBS and DDR will win for them.) Their ROE has been 22-25% for the last couple of years. No longterm debt. Volume of product shipped has been rising at 70-80% year over year. Revenue has been flat because raw memory chip prices have fallen so much. They reported a quarter today with a 20% jump in revenue, 30% increase in profit, and a 33% increase in profit per share, while SGA dropped 19%. PSR is .6, PE is 10, management owns lots of shares. They bought in over 5% of their shares last year, and are continuing to buy. Stock price is $8.50 with cash of $1.31 and the company owns a 90 acre corn field on Rt 1 in Princeton (which is for sale) that should be worth $1 1/2 to $3/share. They're looking more and more like a Kingston Technology (in fact Kingston points to them as their major competitor).
Lau
Lau |
