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

To: MileHigh who wrote (26177)	8/2/1999 10:49:00 AM
From: Dave B	Read Replies (1) \| Respond to of 93625

MH, Sorry, I misunderstood. I thought from this line in your post: It seems to be "priced for perfection" already... that you thought his analysis was actually valid in some way. That was the part I disagreed with. There were too many assumptions in the analysis to claim that RMBS is priced at anything besides what one person wanted to pay for it and one person wanted to sell it for on Friday 7/30/99 at 4:00 PM EDT. As an example of the sensitivity of his analysis, if you change the PE to 60, then RMBS is currently 16% undervalued (approx. $16). If you change the discount rate to 40%, then the fair value is $109. If you do both, then it's $131, almost 50% above where we are now. There's not much value in these projections with such a wide spread for such a small change in assumptions. Dave