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

To: mauser96 who wrote (34138)	11/1/2000 12:22:43 AM
From: tinkershaw	Read Replies (4) \| Respond to of 54805

In addition to the two problems with RMBS I mentioned in my last post to you on the subject, we can add in relatively high costs compared to conventional memory. This is a real Catch 22 - high costs mean less use, less use means lower production, lower production means higher costs, etc I was reminded on the Fool board that at the last CC it was stated that the production cost difference according to Samsung for Rambus vs. SDRAM is currently a 40% premium. As stated before Samsung sees this premium coming down very substantially over the next year, some sources saying as low as to be within 5%, that is the low estimate. I am more comfortable with 10-15%, even at that level the price difference is only a temporal condition. To own RMBS now you have to take in the big picture. However, I do agree with your assessment of many a G&K out there to feast upon. Amongst those I like CREE is at a very compelling valuation. Here is an excellent summary along with managements time table for the introduction of new products: boards.fool.com Hmmmm, oh boy, oh boy. Yes, maybe there are lower risk/reward companies out there. Mind you CREE has nowhere the upside of RMBS at this point in time but the subsequent risk is certainly less. Hmmmmmm. Hmmmmmmmmm. Tinker