To: Don Green who wrote (36637 ) 1/18/2000 9:47:00 PM From: Don Green Read Replies (1) | Respond to
In an action that could affect the entire memory chip industry, embattled memory chip designer, Rambus (RMBS:Nasdaq - news) went on the offensive Tuesday, by suing memory maker Hitachi for patent infringement. Filed in Federal District Court in Delaware, the suit seeks to stop Hitachi from making or selling a variety of its synchronous-DRAM chips. These include not only next generation double data rate DRAM, which has been seen as an alternative to Rambus, but PC100 SDRAM, which is the most common type of PC memory chip sold today. Rambus has become a cult stock among both individual investors and short sellers: Of the 23.80 million shares of Rambus outstanding, 37% are shorted -- that's 48% of the company's 18.60 million share float. Chip analyst Seth Dickson of Warburg Dillon Read predicts that investors will applaud Rambus's aggressive action. "There will be more short covering than long buying, because its an offensive on the part of Rambus and says that clearly they have legitimate technology that is being used today." (Dillon Read is not an underwriter of Rambus.)
