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

To: cardcounter who wrote (46045)	6/26/2000 5:19:00 AM
From: tekboy	Read Replies (2) \| Respond to of 93625

you could be right... of course, if you think the Naz deserves to be in the high 2000's or low 3000's at best, then you'll be shorting lots of other things these days along with Rambus and Microstrategy, right? Message 13862701 Message 13747391 Message 12293187 tekboy@dramamine.com

To: cardcounter who wrote (46045)	6/26/2000 9:38:00 AM
From: Dave B	Read Replies (1) \| Respond to of 93625

cardcounter, You were doing fine until this statement... A 2% royalty of the entire market gets you $600 MM in revenue, and with a generous net margin of 30% you're at $180MM net (historically net income is has been about 20% of sales) .. assume shares outstanding stays the same (it won't) and your at $1.67 eps Rambus has no cost of goods to pay for and no significant marketing expenses (since it will be the partners who pay for advertising, etc.). The net margin will be quite a bit greater than 30%. And with only about 200 employees (300 next year?) there's not much in employee expenses, either. You've missed the same point that many have missed about this company. I'd be surprised if they could find a way to spend $100M in 2001 based on the numbers you posted. And that would almost triple your EPS estimates. Dave