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

To: Elmer Flugum who wrote (36266)	1/5/2000 5:39:00 PM
From: Don Green	Read Replies (2) \| Respond to of 93625

The market finally warms to Rambus Fayad Abbasi Jan 5 2000 The story keeps getting brighter for our maligned Rambus (RMBS). Two recent announcements have helped shares of RMBS gain ground over the past few days despite a sharp market sell off in technology issues. Samsung has reported completion of the 288 megabit Rambus dynamic random access memory (RDRAM). Based on my article on December 29, 1999, the key to success for RMBS is lowering the sales price of its memory. With higher capacity memory, the price for 144 megabit RDRAM should come down. Specific pricing information is not yet available. Also, AsiaBizTech released a report on anticipated output for RDRAM in 2000. Global production is anticipated to reach about 16% of all DRAM production, based on bit basis. While Samsung continues to spearhead production efforts, NEC and Toshiba are also increasing production output. I am reiterating my bullish stand on RMBS based on optimism from the memory manufacturers and the anticipated unit price declines. I am placing a price target of $100 per share. Based on my 2000 earnings estimates of $0.82 per share and 2001 EPS of $2.55/share, my price target reflects 39x 2001 earnings. My estimates are based on 13% market share in 2000 and 35% market share for RDRAM in 2001. While it is difficult to predict actual market penetration, RMBS may see upside surprises with higher penetrations based on Playstation II sales and increased memory demands from Windows 2000. streetadvisor.com