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

To: grok who wrote (26124)	7/31/1999 11:01:00 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 93625

KZ, They already are working on the second generation product. My question has to do with the money that's left after they spend as much as they want to on R&D for future products. Remember, this is a company ala Microsoft, that has little if any significant capital expenditure needs. I am talking about the need to nurture intellectual capital. This is the most important internal thing they can spend the money on IMO. But many Rambulls here are forecasting a huge amount over and above that. I think intellectual capital gets nourished when the value of their ownership in their employer goes up. Share buybacks do have that quality. Barry

To: grok who wrote (26124)	7/31/1999 11:08:00 PM
From: Dave B	Respond to of 93625

KZ, I suppose that they develop second generation drdram. They certainly do need to develop DRDRAM II to protect their "cash cow" otherwise someone else will do it and Rambus will fade into the twilight. More importantly, if DRDRAM picks up a significant share of the market, then at some point their revenue growth begins to mirror the DRAM market growth (or decline). Of course, logic chip royalties may help ameliorate that somewhat. To continue to grow, Rambus is going to have to expand their technology beyond the DRAM market. I suspect they'll have to spend some of the earnings on developing new markets. Dave