Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: GVTucker who wrote (44423)	6/15/2000 5:23:00 PM
From: GVTucker	Respond to of 93625

Apologies to the thread. Earlier today I said: RMBS market cap as of the close yesterday was $22,001mm. Making the extreme assumption that RMBS has no expenses and needs to make zero investment in R&D so that the $600mm in revenues flow straight to the bottom line give RMBS after tax revenues of $420mm if you assume a generous 30% tax rate. That gives you a PE in excess of 50. And that is using every single assumption in RMBS' favor. My number for the RMBS market cap was off by a factor of 4. My Bloomberg software had adjusted the shares for the split but had not yet adjusted the price this morning. Thus, the market cap I quoted was way too high. Which means that you could make a case from that perspective that RMBS is a good value, as Bilow maintained.