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

To: Pat Hughes who wrote (58035)	10/18/2000 1:43:53 PM
From: Jdaasoc	Respond to of 93625

Pat: 2 years ago there was supposed to be one toll booth;RDRAM. I imply that Barrett describes a situation where RMBS collects on all SDRAM. That's my opinion and I am sticking to it. john

To: Pat Hughes who wrote (58035)	10/18/2000 11:04:49 PM
From: Zeev Hed	Read Replies (7) \| Respond to of 93625

Pat, I think it is more than that. That is the first time I see Barrett actually blaming RMBS for its recent problems. They'll fulfill their legal obligations, but not do much more. From these few sentences I read much more than disappointment, I hear a rift between INTC and RMBS. My basic assumption has always been that INTC needs the bu$$ more than the bu$$ needs INTC (so that INTC can continue and collect very high margins on high end processors). Barrett's comments surely put a major question mark on this tenet. I think that RMBS did not check first with INTC its legal strategy, and when you undertake such a major attack on an important segment of the industry, you'd better make sure that the gorilla is on your side. I expect that after a morning knee jerk rally in the bu$$ for the better than expected earnings, the stock will drift down. Today it already showed that the $54 level is no longer a strong support. This could have been induced by the general panic, but could also be an intrinsic indication of mutual funds bailing ship. I think that by next March we will ave seen $31. We may get a run before that if the Infineon suit is a win, but unless INTC changes its tone, Earlie is right, this stock is in grave dangers. Assuming that they collect royalties on the whole DRAM sector (and thus sometime in the 2003/2005 framework earns $4/share) may no longer be a valid assumption. Of course, these muttering may change if the technical picture changes (like a close above $75), but for now. I'll step aside and wait until the legal fog clears, or until INTC changes its mind because they have a huge success with the P4 and DDR runs into its own technical problems, leaving AMD behind. I see that the stock closed in after hours at $66 plus, I do not think that this will hold. Zeev