There's Rambus in your Future!
This is what I have compiled regarding Rambus, it may be helpful to new investors, it may be helpful to some who are already invested.
Anyway, FWIW
Microprocessor speeds have advanced 50 times since early 1980, memory data transfer has improved only 11 times. Rambus technology improves bandwidth 8-10 times.
Rambus doesn't manufacturer their product and they do not sell chips. Other companies manufacture under licensing agreements and Rambus collects royalties on each chip using their technology (1.5%-5%). Any profits above break-even are 100% net margin.
Announced Rambus-based systems include: AMD (K-7), BROCADE (Silkworm network switch), COMPAQ (PC's), DELL (PC's), EVANS & SUTHERLAND (3D graphics), FORE SYSTEMS (ESX-2400 & ESX-4800 network switches), HEWLETT-PACKARD (workstations), INTEL (820 & 840 chipsets), NATIONAL SEMICONDUCTOR (PC processors), NINTENDO64 (graphics), PIXELFUSION (windows NT graphics chip), SONY (Playstation2), VIDEOLOGIC (power VR graphics controller).
Rambus licensees
over 30 semiconductor companies which include the leading DRAM, ASIC and PC controller and chipset manufacturers. Also eight of the world's top-ten semiconductor companies license Rambus.
including: IBM, LSI, NEC, TEXAS INSTRUMENTS, VLSI, LG SEMICON, MATSUSHITA, OKI, TOSHIBA, S3, VIDEOLOGIC, ACER, COMPAQ, INTEL, AMD, HEWLETT PACKARD, NATIONAL SEMICONDUCTOR, HITACHI, HYUNDAI, MICRON, MITSUBISHI, SIEMENS, SAMSUNG, KINGSTON TECHNOLOGY, AMCC, PHILIPS, CYPRESS, SCHLUMBERGER, TERADYNE, MOLEX, TRANSCEND, SMART MODULAR, VIKING, FUJITSU.....this is a partial list of partners
Rambus is expanding out into the telecommunications market in the upcoming year. In addition they have plans to double to 3.2 GHz (chip to chip communications), quadrupling memory module bandwidth to 6.4 GB/s.
<http://www.rambus.com/general/press_releases/pr_120999.htm>
Intel also has roadmap for PC market (2000 and beyond).
<http://develop.intel.com/design/chipsets/memory>
Playstation2; Rambus enabled begin shipments in Asia and Europe. Q100.
<http://www.fool.com/news/1999/sne991203.htm>
5 brokerage houses are currently covering Rambus--price targets range from $90-$125.
Rambus has reported upside surprise in 11 of 12 quarters since their IPO.
<http://quotes.freerealtime.com/rt/frt/frame?url=http://www.bigcharts.com/custom/freerealtime.com/freerealtime.asp?symb=RMBS>
Their earnings growth is expected to average upwards of 75% for the next five years. Here is a chart of the next 8 quarters.
<http://earnings.nasdaq-amex.com/earnings/earnings_forecast.asp?symbol+RMBS%60&selected=RMBS60>
The whisper # for the quarter is $0.12 against a forecast of $0.10
PE ratio & Growth rate expectations (PEG ratio)
<http://earnings.nasdaq-amex.com/earnings/peratio_growth.asp?symbol+RMBS%60&selected=RMBS%60>
Institutional ownership is increasing each quarter with over 100 institutions currently listed. 67% owned by institutions.
<http://www.siliconinvestor.com/research/profile.gsp?s=RMBS>
The top 10 institutions and change from previous quarter:
<http://www.siliconinvestor.com/readmsg.aspx?msgid=12285749>
Finally, short interest as of Nov. 20, 1999 stood at 8.7 million shares, which is nearly half of the 18.8 million shares float. This stock has always moved on rumor...In the future look for more traditional moves. It is my opinion that the stock has found a base, It is also my opinion that the downside looks limited and the upside looks tremendous. JMO, BWDIK
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