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

To: Catcher who wrote (46446)	7/2/2000 7:39:09 PM
From: Dan3	Read Replies (3) \| Respond to of 93625

Re: Dan, do you think rmbs management would stay silent and watch the stock double knowing there was no real merit to the recent announcements? Well, they just loudly announced a licensing agreement covering RDRAM and SDRAM when the reality was that the important item - the market moving item - in the agreement was for a six month period. Meaning it was a nuisance settlement, not a material one. Here's what they released: rambus.com The license agreement involves patents for fundamental aspects of high-speed memory interfaces invented by Rambus which are currently being implemented in Hitachi's SDRAM, Double Data Rate (DDR) SDRAM memory, and Hitachi's controllers which directly interface with these types of memory. Under the licensing agreement, the royalty rates for DDR SDRAM and the controllers, which directly interface with DDR SDRAM, are greater than the RDRAM compatible rates. The agreement also includes royalties for SDRAM and for controllers that directly interface with SDRAM. And part of the agreement was that none of this applied to new compnay just formed by NEC and Hitachi into which all Hitachi DDR and SDRAM were being moved - but they "kept silent" about that until pressed for an answer days later. So, yes, I absolutely think Rambus management would stay silent - especially since they are all so busy unloading stock at the current prices. According to the most recent 10-Q Rambus management spent $171 million dollars to give themselves additional stock options in a quarter with $16 million dollars in total revenue. That's your money they're putting in their pockets. Dan