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

To: Steve Lee who wrote (27101)	8/14/1999 10:29:00 PM
From: jmac	Read Replies (1) \| Respond to of 93625

To the thread... i have read patiently over the past 3-4 months waiting for the big news to hit. I have read all of the bull posts and bear posts. I have even read all the "drip, drip, drip posts". The only thing I can see that we all agree on is that whatever the nes, good, great, bad, or really terrible, it is going to hit sometime in the next 6 weeks or so. Right? If that is the case, isn't this the perfect time to be investing in RMBS using options rather than holding stock. Or, hold the stock and invest in a little downside protection by buying Sept. puts. If RMBS news is great, then the cost of this insurance is minimal as RMBS will reach new highs (30+point gains). Any thoughts?

To: Steve Lee who wrote (27101)	8/15/1999 4:48:00 AM
From: unclewest	Read Replies (1) \| Respond to of 93625

This factor of 16 or 32 argument does not compute. As the game platforms increase their demand for RAM, the price of RAM falls. It is very likely that 16MB next year will be at the same cost as 4MB now. As RMBS are paid a royalty based on cost, rather than number of units sold, RMBS earnings will rise proportional to cost of RAM sold, rather than megabytes sold. So if RMBS is already in nearly 50% of games platforms and have miniscule earnings at present, 100% game platform market penetration will yield an income from that platform that is at most, double the current amount i.e. miniscule. I think the RMBS earnings hinges almost entirely on sales of RAM for PCs. you are the first to predict that we will be able to buy 4 rdrams in one year for the cost of one today. i hope you are correct. i would be thrilled to get 1/2 of that. btw the gamestations use 32mb not 16. using your theory means the increase will be 4x not 2x. 35% of rmbs earnings hinge on pc sales. unclewest