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

To: Zeev Hed who wrote (58203)	10/19/2000 1:52:01 PM
From: jim kelley	Read Replies (1) \| Respond to of 93625

Zeev, I suggest that the market is much more generous than you in assigning market capitalization even in this "bearish" Nasdaq market. QCOM is probably the closet IP company to RAMBUS (despite their manufacturing arm). It has already experienced the challenges to to its IP. If you look at their PEG, you will see a 5 year growth rate of 35% being valued at 75 times last years earnings and 60 times next years earnings. The valuation is roughly 2 X next years expected earnings growth rate. I believe that Edelstone's $200 per share figure is much better than your estimate. The reason for this valuation IMO is that QCOM has the potential to score huge new contracts in China and ROW. RMBS is in a similar but even better position because they are a pure IP play and they stand to expand their market by 6 to 10X over the next year. They can pick up 5 X from just licensing the DRAMURAI. They can pick up even more by licensing their controllers in new markets plus they can pick up as much as a dollar per share in contract fees. The current earnings estimates on Rambus do not include any of the above liklihoods.