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


To: wily who wrote (32539)10/22/1999 11:23:00 AM
From: wily  Respond to of 93625
 
Further thoughts on RMBS 2006 PE:

I guess you could say that you should at least assign a PE equal to an average S&P500 PE, since the company could just plow all the money into an index fund. Furthermore, having the money in an index fund wouldn't stop the company from making money on product, so any product revenues would be gravy over a baseline S&P PE. Average S&P PE equals what, 17 or 18?

Or is this a naiive scenario? Would a company actually do this?

w