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

To: Dave B who wrote (24200)	7/7/1999 2:10:00 AM
From: Barry Grossman	Read Replies (1) \| Respond to of 93625

Dave, Here's what I get. Whatever comes after "CPU manufacturing is a tough business, but Intel's perpetual do" is missing. Betcha Can't Eat Just One A Silicon Investor Highlight By David Zgodzinski July 5, 1999 Chips are hot. All flavors of semiconductors, any kind of dip. The moves on the SOX Semi-conductor Sector Index are becoming habit forming. The threads are snacking. Rambus Inc. does not manufacture their own chips. The company has licensed their technology to manufacture what is known as "Direct Rambus DRAM" to major memory chip makers. The enthusiasm for the new technology, even before it has appeared in commercial products, is lighting a candle under the stock. unclewest wrote to the RMBS - RAMBUS Eagle or Penguin thread June 27th.. In one week, we have learned the following: Rambus in Intel Camino chipsets to ship in September. That means Rambus in pc's this September. Rambus in Intel Carmel chipsets scheduled for this fall. Rambus in Dell workstations to ship this fall. Rambus in graphics cards in production. Rambus in copiers is coming. Rambus in hdtv may already be in production. Rambus in Sony new Playstation II. Confirmed September release in Asia. Helluva week! Maybe that is why we have gone from trading in the $50-60 range two months ago to trading in the $80-90 range now. Bullish? Not as much as Dave B, who wrote.. Rambus will be one of the most dynamic growth stocks over the next 3-4 year period! Direct Rambus DRAM will own virtually 100% of the DRAM market for new products sold (PCs, HDTVs, game consoles, etc.) by 2002 and the majority of the add-on markets, as well as own the majority of the add-on market! RDRAM cures cancer! Rambus is buying Microsoft! Warren Buffet has finally figured out this technology business and has announced that he plans to put 98% of his assets in Rambus. Besides hot technology, the stock had some potential afterburners. GVTucker wrote on June 25, Most people on the thread have noted the large drop in short interest on Rambus. I don't think you really realize what a potentially big deal this is. It is quite possible that a true short squeeze is going on. He went on to dissect the known ownership of the stock and speculate how the squeezers might work as a pack. He added.. It wouldn't take much from there for someone to accumulate some shares, whether it is Vinik or someone else, and actually cause a squeeze. That probably began to happen last month, as short interest declined by a large amount. It may have been what pushed the stock price up to $100 over the past couple of days. Does this mean that the price is going to skyrocket now? Hardly, although it certainly could. It does mean that there's going to be even higher than normal volatility. For Rambus that's saying a lot. The stock has been a trader's dream, ramping up from a dip to $52 in late April, to over $100 in late June, despite setbacks in the manufacturing of the new DRAM chips, and minimal current revenues. Some analysts point out that the roughly 2% royalties Rambus will receive on chip sales may never amount to a huge amount of money, even if the technology captures all of the DRAM market. Still, Robert Jacobs loves the stock.. I have steadily built the core position to 7k shares with a 10k target. I did the same with Microsoft in late 80's to significant reward. As my grandaddy said: "I've made more money with my rear end than any other part of my anatomy" More established and not as volatile as Rambus, LSI Logic has also been a strong performer. Tony Viola compared the stocks this way for the LSI Logic is a good buy thread.. Rambus is like an Indiana Jones movie. LSI is like the Brady Bunch by comparison...but growing everyday! And how. The stock was down to $10.50 last October but has steadily climbed to the current $47. Among other successes, LSI's chips will be the brains in Sony's much anticipated Playstation II. Analysts have been steadily raising their price targets for the stock. shane forbes wrote Many of us have been chastened by LSI's earlier once-a-year disappointments in 1996 (oops), 1997 (this one hurt), 1998 (somewhat expected). LSI has a tendency to have biz booming at 7:30 pm and biz crashing at 8:45 pm. Funny how that happens. This time may very well be different since all the stars seem to be aligned in the same direction in the sector. MileHigh put it this way.. 1- We have nice momo now (SOX on fire) 2- We have Semiconductor Industry Association pumping semi growth numbers 3- We have upcoming PlayStation II this Fall in Japan and US later 4- We will get an upside surprise in this Q's Earnings report 5- We get positive guidance from LSI in Q report 6- Thus, more momo I know this sounds simple and like hype, but most times things do not need to be made real difficult. I think this is one of those times. And he added later... This is one powerful stock, it shows me that the fundies want to be in semi's and will ride them until they let us down. Still, when things look like they couldn't be better, they probably won't. Dipy provided a little historical context for the thread to munch on. Texas Instruments was one of the "Nifty Fifty" stocks in 1972. Even though the company continued to exist, continued to develop new products, and continued to make profits, its returns going forward over the next 25 YEARS, was dismal -- TXN returned 9.0% annualized from December 1972 to June 1997 (compared to 12.9% annualized for the S&P 500 over the same period). Just something to keep in mind when we chase today's tech darlings... CPU manufacturing is a tough business, but Intel's perpetual do