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

To: MileHigh who wrote (26145)	8/2/1999 12:44:00 AM
From: Dave B	Read Replies (2) \| Respond to of 93625

MH, Re: Gary, Super post! So, my point is, what if RMBS does not scale to $6.00 EPS in '01, then what is current fair value? See what I'm getting at? It seems to be "priced for perfection" already... Gary's post had so many assumptions built into it that you can't tell anything from it. Why a 50 PE? Why a 50% discount rate? Why assume $6.00 in 2001? Change any of these factors a little either way by even a small amount and you can make RMBS look wildly under or over valued currently. There's no magic to the number he assumed -- they just worked out to the current price, but that doesn't mean any of them are correct. Dave