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

To: Don Green who wrote (30536)	9/24/1999 5:09:00 PM
From: Orion	Read Replies (1) \| Respond to of 93625

Don, Could you also post the link of the messages you post on the thread like I always do. Let me give you MY Dow Jones article: Basically their news are : - Orders to Intel minus 2Millions (29M vs 31M) - Mobos COULD have to be thrown away - 3rd SLOT pb that even KZNerd considers like no new news BUT no confirmation that the i820 is delayed, you will note that the articles has been issued at 4:12 PM ET(NEW YORK). Let's wait the official communication of Intel. Shares Of Intel, Rambus Fall On Word Of Cancelled Orders, Chip Delays Friday, September 24, 1999 04:12 PM quicken.com NEW YORK -(Dow Jones)- Shares of semiconductor giant Intel Corp. fell Friday after BancBoston Robertson Stephens & Co. said computer makers have cancelled orders for two million Intel chips since the middle of September because of sluggish demand for personal computers. The brokerage also lowered its rating on chip-technology provider Rambus Inc. to "long-term attractive" from "buy" after CNET published a report late Thursday saying a problem with the firm's memory technology could delay the shipment of hundreds of thousands of PCs. Shares of Intel (INTC) closed down $1.828, or 2.4%, at $75.672. Volume was 62.2 million shares, almost triple the daily average turnover of about 22 million shares, making Intel the most-actively traded Nasdaq issue on Friday. Earlier, the stock traded as low as $72.625 a share before regaining some ground later in the session. Meanwhile, Nasdaq-listed shares of Rambus (RMBS) fell $16.375, or 19%, to close at $71.125, with just over seven million shares trading hands, compared with an average daily volume of 1.3 million shares. BancBoston Robertson Stephens analyst Dan Niles said that Santa Clara, Calif.-based Intel had received orders for 31 million chips by early September. But because "PC demand was not necessarily as strong as expected," Intel was notified of the cancellations, Niles said. "With the exception of Gateway and Dell, which are higher, most of our other PC (companies) are at best seeing sequential growth of 8(%)-10%, with many lower than this," Niles said. The analyst added that the Taiwan earthquake could disrupt PC shipments in the seasonally strong fourth quarter. Niles said Intel's stock is likely to "face some pressure in the near-term." Intel also stands to be hurt by a reported flaw in Rambus' memory design, which Intel has used to manufacture memory chips. According to CNET, the problem could force PC makers to throw away critical parts of new high-end computers or face the prospect of shipping potentially faulty machines. Intel has deemed that a third slot for Rambus memory on motherboards shouldn't be there, determining that the extra slot could foul up data transfer between memory and the computer's main processor, even if the slot is empty, CNET reported. Intel and Rambus declined to comment on the matter, the report said. The companies have had a long-term relationship to co-develop and promote the Rambus memory technology as the standard for PCs. Mountain View, Calif.-based Rambus licenses its chip designs to memory makers like Intel and charges them a royalty when they sell chips based on the Rambus technology.