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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Richard Habib who wrote (22041)	6/8/1999 2:15:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 93625

Sorry Richard, you are right, Please forgive me.. Now for some other news: Rambus Surges on Optimism Its Chip Technology Will Dominate Mountain View, California, June 8 (Bloomberg) -- Rambus Inc., a designer of high-speed computer chips, surged as much as 14 percent on optimism that its proprietary technology will become a personal-computer industry standard. Rambus rose 9 7/8 to 87 3/4 in midafternoon trading, after reaching 88 7/8 earlier. Its shares have surged about 29 percent so far this month. Intel Corp., the world's largest semiconductor maker, is promoting Rambus technology to the computer industry and has given tens of millions of dollars to memory chipmakers to upgrade their factories. Market research firm Dataquest Inc. estimates that the percentage of memory chips sold based on Rambus technology will rise from 3.1 percent this year to 67 percent in 2002. ''We believe that the penetration of Rambus memory-based PCs will increase to 20 to 25 percent of the overall PC market next year and 40 to 45 percent in 2001,'' said Mark Edelstone, a Morgan Stanley Dean Witter analyst, who upgraded Rambus yesterday to ''strong buy'' from ''outperform'' and raised his 12-month share price target to $150 a share from $110. Edelstone said he lowered his fiscal 2000 earnings-per-share estimate for Rambus to 80 cents from $1 as a recent collapse in memory prices will probably lower Rambus memory prices and could slow the transition to the new memory in the first half of next year. ''It would be wrong to focus on the short-term earnings picture, since the whole valuation of Rambus has very little to do with its earnings in fiscal 2000,'' Edelstone said. While he hasn't released earnings estimates for fiscal 2001, he said, ''We believe that they have the potential to at least triple over the expected results in fiscal 2000.'' Mountain View, California-based Rambus licenses its high- speed technology to memory and microprocessor chipmakers such as NEC Corp., International Business machines Corp. and Samsung Electronics, who will pay the company royalties based on the amount of products sold. Intel is expected to release its Rambus-based Camino chipset this September. Intel needs the chipset to boost the speed of its Pentium microprocessor chips, which run personal computers. A chipset acts as the intermediary between the microprocessor and the memory. Investors have been waiting for signs that the PC industry will be following Intel's lead and embrace Rambus. Yesterday, memory chipmaker Micron Technology Inc. said it shipped samples of its Rambus-based chips to Intel for evaluation in anticipation of shipping production volumes in the second half of this year. Greg

To: Richard Habib who wrote (22041)	6/8/1999 2:17:00 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 93625

Rich, Don't know whether you saw this or not, but it bears repeating, imo. o: +unclewest (19918 ) From: +Tom Warren Tuesday, May 11 1999 2:18PM ET Reply # of 22042 Understanding Rambus FUD Wading through the sea of bad press over the last month, I felt compelled to produce a roadmap. There are at least 5 centers of “self interest” involved in this campaign. First are the dram manufacturers that put in place advanced production capacity at .22 or .20 micron. Micron Technology is the prototype for this group. While attempting to lower their manufacturing costs on 64-Mb parts they almost accidentally created parts that operating at 133 MHz. They would love to sell those parts at a premium price, but can't without support from a chipset. They cost no more than 100 MHz parts off the same line so the premium could be entirely profit. Micron is interested enough in this possibility to attempt entry into the chip set business. Second are the “Open Standards” groups. The memory committees of JEDEC are the prototypes for this group. If Rambus becomes the standard for memory, they are out of business. A proprietary standard, completely specified and maintained by Rambus obviates the need for a public body specifically for memory and weakens the general power of these groups. It is small wonder that the heads of the two of these committees Desi Rhoden and Bill Gervasi are quoted repeatedly as sources of negative information regarding Rambus. Third are the graphics and chipset manufacturers who are directly in Intel's path. VIA and S3 are prime examples. Whitney, by incorporating graphics on the chipset, raised the heat substantially. This group needs (in some cases desperately) an edge or a niche in which to compete with Intel. They hope that PC133 or DDR SDRAM will provide that niche. The battle between AMD and Intel might just create some short term opportunities for this group. VIA hosts a website for the PC133 group. Visit and you will find all the names mentioned here dutifully engaged in their crusade against evil. Fourth is the priesthood. This group will save us for a fee. The In-Stat group is the prototype. They are the organizers of a series of forums / conferences promoting Rambus alternatives. In-Stat employees Bert McComas and Steve Cullen are frequently quoted in Electronic News with anti-Rambus opinion. Cahners owns both In-Stat and Electronic News. If you didn't understand the editorial position taken by Jonathan Cassell in “Tilting at Windmills” in the May 3 issue, you should now. Fifth are the shorts. Sorry I can't name names or cite specifics, but I think it is important to recognize that there is another group out there with a huge vested interest in Rambus falling on their face. If they don't directly generate “news” their existence has and will continue to generate media interest just to watch the fight. In the interest of honest disclosure, my investment partner is Stuart Steele and we are both very long on RMBS.

To: Richard Habib who wrote (22041)	6/8/1999 4:14:00 PM
From: sam	Respond to of 93625

Richard: I appreciate the posting of the article. It helps to know when and from where the negative info is coming. And Betty, Tom Warren's post was (is) very helpful for all of us longs...and (I'm sure) a thorn in the side of the bears. My guess is we've seen some more short covering today. The recent flurry of RMBS news releases, the counter punch of FUD, and the appearance on this thread of some notable bears suggests to me that this is what we are witnessing. Not so sure they won't short again. They still feel that RMBS will fail. They're probably just biding their time. But they have to be very disappointed with the recent strength...and the fact they have been forced to cover some of their position. All imo