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

To: Mohamed Saba who wrote (32478)	10/21/1999 11:35:00 AM
From: Glenda King	Read Replies (2) \| Respond to of 93625

Mohamed, <<I do not know, at this time, of a better long term investment >> Me either. That's why I was in there this morning...buying more Rambus. Also doin' my part to drive the shorts out. LOL Glenda

To: Mohamed Saba who wrote (32478)	10/21/1999 11:38:00 AM
From: Mohamed Saba	Respond to of 93625

We have lift off. $66. <eom>

To: Mohamed Saba who wrote (32478)	10/21/1999 12:30:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 93625

Mohamed, nice calculations, I think, however that your earnings are pretax and average overall tax rate can reach 40% of gross income. Zeev

To: Mohamed Saba who wrote (32478)	10/21/1999 1:29:00 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 93625

Mohamed, That was a good summary of the way I feel too. Intel is the key and they have not wavered one iota in their long term view of Rambus technology's impact on memory in pc's. They have to utilize the Rambus technology to move forward with their faster and faster processing speeds. Software will follow the availability of the hardware to utilize it. I have absolutely no doubt about this. In fact, I'm certain that smart people are writing it right now. It's not about making word processing or spreadsheets work faster or fancier. It's about what the mind can conjure up that wasn't possible before. Best of luck. Barry

To: Mohamed Saba who wrote (32478)	10/21/1999 1:41:00 PM
From: wily	Read Replies (4) \| Respond to of 93625

Mohamed, This is my problem with Rambus P/E valuation models. Maybe I am completely missing something, but I've been asking this question for a while and no one has answered. Assume that Rambus earns $10 in each year from 2001 through 2005. Since it is worth $3 (book) now, that makes it worth $53 at the end of 2005. At that point, is Rambus still a valid technology? Previous DRAM standards have lasted 2 years. People were tossing around 5 years for Rambus since it is such a "big step". So at the end of 2005 Rambus has $53 X 25MM shares = $1325MM PE usually reflects a company's return on equity. What return can we expect from 2006 onwards? How will Rambus be making money then? If they invest wisely, maybe an optimistic 15%? Then: 0.15 X $1325MM = 199MM = $8/share And since PE = ROE, PE=15 so: $8 X 15 = $120/share in 2006 Where am I going wrong here? w