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

To: Don Green who wrote (45088)	6/19/2000 1:42:00 PM
From: Don Green	Respond to of 93625

Rambus? Potential Unstoppable Pop Fayad Abbasi Jun 19 2000 For those of you who read our report on Rambus [RMBS] over the weekend, we apologize for any confusion created. The agreement between Toshiba and Rambus was not for Rambus dynamic random access memory (RDRAM), as we assumed, but for patents Rambus holds on standard synchronous DRAM (SDRAM). This changes everything. We will maintain our hold rating on the stock until we learn more details, but want to let you know that this is a very big deal. Earlier this year, Rambus sued Hitachi for infringement on patents. Rambus contended that Hitachi?s SDRAM products infringed on patents held by Rambus and that the company should pay royalties for past and future Hitachi products. Toshiba?s licensing agreement essentially admits that Rambus has a legitimate claim on the patents for SDRAM. Rambus also has patents on future iteration of SDRAM. While we do not know the details of the patent portfolio held by Rambus nor the royalty payments due, we do know that the scope is much wider than that of RDRAM. The bottom line: Rambus may hold patents to claim royalty on the entire DRAM memory market. With the total memory market worth more than $20bn last year?a historically slow year, I might add?the potential benefits for Rambus are significantly higher than anything priced into the stock at this time. Again, until we receive more information, we?ll refrain from changing our position on the stock?but if the details are as we expect, strap on your seat belt and watch this stock soar to the moon.