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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (28869)	7/26/2000 10:49:52 AM
From: tinkershaw	Read Replies (2) \| Respond to of 54805

Due to low-bandwidth for the summer I hope this response is not redundant but to put the Rambus news into strategic perspective. (1) RDRAM P IV coming out this fall; SDRAM P IV second half 2001 (9 month advantage to market) (2) Samsung has set goal to get RDRAM memory down to a 5% premium over SDRAM by early 2002. If these publically stated goals come to pass it is very likely that SDRAM Pentium IV's will never see the sales shelf. It depends on how much RDRAM supply will be available and if RDRAM can close the premium gap on SDRAM as quickly as Samsung is publically stating. In conclusion: I'd put the odds in favor of Rambus with this current scenario. Also remember that Rambus is likely to receive royalties on all of these memory chips. This said, still pondering if I'm going to buy back in or not. But this is the way I see the strategic landscape for Rambus if you cut through the FUD to the facts. Tinker

To: DownSouth who wrote (28869)	7/26/2000 5:41:24 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Remedy Systems used to be a player in my Front Office Gorilla Game. I'm glad it's not now. How'd ya like to beat consensus earnings by a penny and have the stock tank 50% that day? Read all about it. (This is the second time in two or three years that Remedy has had fundamental problems with its sales force.) --Mike Buckley ================= NEW YORK, July 26 (Reuters) - Shares of Remedy Corp. <RMDY.O>, an electronic commerce product provider, lost almost half their value Wednesday as analysts downgraded the stock, citing a revenue shortfall and echoing concerns the company had noted in its earnings statement about sales force staffing problems. Mountain View, Calif.-based Remedy shares were down 20-15/64, or about 48 percent, at 21-7/8, making it the biggest percentage loser on Nasdaq, and the fourth-largest net loser. After a Tuesday close of 42-7/64, the stock plunged at the start of trading Wednesday, approaching its 52-week low of 18-12/16. Late Tuesday, the company said second-quarter earnings, excluding the amortization of intangible assets, were $8.39 million, or 29 cents per diluted share, up 34 percent from $6.22 million, or 22 cents per share, a year earlier. The Wall Street analysts' consensus estimate was for a profit of 28 cents per share, according to research firm First Call/Thomson Financial. Revenues rose 30 percent overall, but chairman Larry Garlick said "end-of-quarter attrition in one sales region made the quarter a bit challenging." Analysts at Chase H&Q and Banc of America Securities cut their ratings on Remedy on Wednesday morning. Chase cut Remedy to buy from market perform, saying that revenues of $69.1 million had missed its estimate of $72 million. Analyst Ian Morton trimmed fiscal 2000 revenue estimates to $306 million, from $313 million, and cut earnings per share estimates to $1.37, from $1.40. Morton also trimmed fiscal year 2001 revenue estimates to $402 million from $415 million, and earnings per share estimates to $1.75 from $1.77. "Customer demand is healthy, the company must focus on hiring and sales execution," Morton said in a research note. "The potential for upside over the next few quarters is reduced." Lowering Remedy's rating to buy from strong buy, Banc of America noted Remedy reported disappointing second-quarter results, sales force turnover problems and some new products not gaining expected traction.