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

To: NightOwl who wrote (41598)	5/8/2000 2:13:00 AM
From: Dave B	Respond to of 93625

NightOwl, Well I wasn't expecting that. Are you sure about the value of INTC's MU investment having grown to an amount exceeding their costs in direct DRDRAM support? No, I'm not. But someone just earlier today posted a message that said the $500M had grown to $1.89B, if I'm remembering correctly. It caught my eye that their investment had grown so significantly, but I may be off a bit on the numbers. <edit: I just saw Barry's follow-up post on this question. It looks like the investment has only doubled.> If this is true then I have to go back to the drawing board. It isn't immediately clear to me at all why I haven't seen anything from them about buying DRDRAM. Don't forget that Rambus has also offered warrants. I don't have an opinion on whether or not Intel should be buying RDRAM. I can understand a fab house not announcing that they are going to produce chips they can't make yet. I can't say that I have seen it happen very often in this industry, but I can understand it. There's a phenomenon called The Osbourne Effect. When Adam Osbourne announced the Osbourne II computer was coming out, sales of the Osbourne I dried up as everyone waited for the new product. The Osbourne II ended up being delayed something like 6 or 9 months and the company went belly-up. One of my complaints with Marketing groups, in general, is that people usually want to pre-announce products before they're ready to ship. This just gives your competition time to respond to your announcement. In fact, I used this against a competitor in the software business once after they preannounced a product (by about 6 months) and our engineering team made a superhuman effort to bring in the schedule for our new version and add additional features. We announced our new version two weeks before the competition and we made them reprint all of their literature since it had been developed comparing their product to our previous version. The only reason to pre-announce, IMO, is if your way behind the competition and want to muddy the waters significantly, but that doesn't apply in this case, since pre-announcements by memory manufacturers would simply serve to reduce the uncertainty around RDRAM. Thanks for the answer but I am afraid I would be more accepting of INTC's asserted support if I knew they had some cash at risk. Seems to me they have a lot at risk (reputation, etc.). They're not stupid people, and if they perceive that they're going to lose significant business, they'll dump RDRAM (and I'll be gone). Have a good evening. Dave

To: NightOwl who wrote (41598)	5/8/2000 2:17:00 AM
From: Barry Grossman	Read Replies (1) \| Respond to of 93625

0\|0, you sure about the value of INTC's MU investment having grown to an amount exceeding their costs in direct DRDRAM support? intel.com Intel Makes $500 Million Equity Investment In Micron Technology, Inc. Funding to support memory development and supply, accelerate RDRAM development SANTA CLARA, Calif., Oct. 16, 1998 - Intel Corporation and Micron Technology, Inc., announced today that Intel will make a $500 million equity investment in Micron. Intel will acquire stock rights exchangeable for common stock representing approximately 6 percent of Micron's outstanding common stock. MU Date Open High Low Close Adj. Vol. Adj. Close Oct-16-1998 33.875 34.5 32.0 32.0 12,254,400 16.0 May-5-2000 62.0 63.0 60.0625 60.5 4,657,000 60.5 bg