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

To: Don Green who wrote (22482)	6/14/1999 12:55:00 AM
From: maroon	Read Replies (1) \| Respond to of 93625

I disagree. IF Rambus is the next mem standard, they could justify ANY price in the market regardless of the overall market. Are there risks? YES Just like any other INFANT stock.

To: Don Green who wrote (22482)	6/14/1999 12:57:00 AM
From: maroon	Respond to of 93625

I am sorry, I am new to this thread. What are you "betting" ? Money?

To: Don Green who wrote (22482)	6/14/1999 9:11:00 AM
From: Matrix_Man	Respond to of 93625

Don, TTM PE is really meaningless for a company like Rambus. Whether the market goes up or down, a lot or a little, RMBS price will be based on its potential. That is, you must look at the forward PE, the PE based on the next 1 or 2 years estimated earnings. If you do that I think RMBS is currently fairly priced. Having said that, if there is a real worldwide market crash, a 1929 type of disaster, it will obviously affect Rambus' future earnings, even if it does become the next standard. Again, I will still not look at TTM PE, but the next 1 or 2 years forward PE, which in a real market crash would then become truly enormous and the stock may then be overpriced and come down. However, a market correction to 10k or 9k or so, without a break in the basic sound underlying economy, will NOT affect RMBS price significantly provided the future earnings picture does not change. Ironically, it could make it go up further. And isn't RMBS the ultimate in daily irony!