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

To: Zeev Hed who wrote (48822)	8/2/2000 11:22:47 PM
From: SBHX	Read Replies (1) \| Respond to of 93625

Zeev, those $40B and $70B numbers for memory are much higher than I expected. Perhaps I'm just thinking of DIMMs on PCs, and not the elusive '500M portable mobile devices', or cache memory on HDs and other devices --- even digital cameras and microwaves. That's amazing. Guess I have to rethink this thing properly. SbH

To: Zeev Hed who wrote (48822)	8/3/2000 12:03:06 AM
From: The Prophet	Read Replies (1) \| Respond to of 93625

Sorry, Zeev, you're way off. Peak, including DRAM, chipsets, and controllers will be approx 100 billion. Average royalty will be closer to 1.5% since RDRAM is 1.5%, SDRAM is approx 1%, DDR is approx 2%, controllers are higher, etc. With 35% tax rate, gives us approx 1 billion in earnings or $10 a share. Now, let's add all the new goodies RMBS is into. Tate has not been wrong yet, and he says that DRAM is but 60% of RMBS. Taking him at his word, we will then reach $16 per share. That should give us a $300 valuation. This is probably best case. But you were talking best case.