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

To: Steve Lee who wrote (45350)	6/21/2000 10:48:00 AM
From: Estephen	Respond to of 93625

The estimate is conservative. The market prices a stock at roughly 6 months in advance. In 12 months 227 will be fair value. Thats only counting the dram market, another 40% of the rambus market in logic devices!!! Those revenues will begin to ramp in 12 months. A PE of 70 is good when you consider the rate of growth of the semi and telco industry. BTW, Edelstone w/ MS raised his taget to 200. He's always been too conservative on rambus IMO.

To: Steve Lee who wrote (45350)	6/21/2000 6:06:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 93625

Rambus has one thing really going for it: it is a darling of investors. I don't know how anyone can make the hypothesis that RMBS will get paid a 1% or 1.5% royalty on all DRAM manufacture. Correct me if I'm wrong, but the memory suppliers who have signed on to licensing agreements have agreed to pay royalties on RMBS memories and not on DRAMS or DDRAMs. And while some recent agreements are very positive, RMBS has not signed up all DRAM suppliers and some of those that they have agreements with continue to fight them regarding patent claim coverage for "standard" memory architectures. As long as the stock has upward momentum I would consider it a buy. From a fundamental perspective, I can't see how anyone can argue that the stock has much upward potential left to compensate for the risk involved in owning it without keeping their finger on the sell button.