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


To: Joe Donato who wrote (42844)5/23/2000 7:22:00 AM
From: blake_paterson  Respond to of 93625
 
"I am just an unpaid basher. I bash for principle only...."

Joe, we see that. It will be demonstrated:

"Rambus Math:
by: jddonato (M/San Jose, CA) 5/22/00 9:06 pm
Msg: 94059 of 94125

3% marketshare of a $30B market = $900M
1% royalty on $900M = $9M

Double it for additional Contract Revenue, and you have about a $20M company with a $4B market cap. That is, a market cap of 200x sales.

Now, Let's say RDRAM really out performs itself and get's 20% marketshare. That will make Rambus a $140M company witha $4B market cap.

Using ANY kind of reasoning this stock is extremely overvalued."

QED.

BP