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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (4074)	7/19/1999 11:01:00 PM
From: Apollo	Read Replies (2) \| Respond to of 54805

Tom & LindyBill: Some really bad news for RMBS. I have read it. It is this type of thing that stops me from coming in early on a potential gorilla. Couple of comments: First, Intel has blinked, and has stated that they will "evaluate" the possible utility of making a chipset for SDRAM PC133; they state it wouldn't be ready, should they make the chipset at all, until 1st half 2000. Ultimately, they may not choose to make a chipset to support SDRAM 133; or they may, but only after Camino/DRDRAM has been out for 6 months. Dell has said they are committed to purchasing 2/3 of the available supply for high-end PCs, workstations. The Rambus/Intel plan has always been to roll out DRDRAM starting with high end market first, then laptops, mid-range market, then low end market. It is felt that should the SDRAM 133 be used, it would be in the low end market, for which DRDRAM wasn't intended to compete until late 2000 or into 2001 after Intel's Timna chip is released. None of this affects the video game market, in which Sony's Playstation 2, and current generation Nintendo use Rambus. I think DRDRAM will become the standard for memory, because of its scalability.....PERIOD. Nevertheless, today's news release hurts...it hurts in the way of public perception, confusion, etc. That will slow share price momentum, which will be even more dependent on earnings and documented growth, and less on expectations. OK, I can live with that. I agree with Lindy's comments that there are risks to early participation in potential gorillas, such as Rambus's dizzy volatility. I suppose we all determine what is acceptable risk; some would say investing in very high growth/PE companies is risky, or investing in a narrow portfolio is risky. I accept the risk; looks like share price appreciation will take longer. Oh well, so I see the Qualcomm board is all over the place on what to make of the earnings announcements. Stan