Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jim McMannis who wrote (59749)	11/1/2000 10:12:14 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 93625

Jim, you are "translating my opinion", for me and right now, the Bu$$ is a short term strategy. I have made some statement as to its median fair value (and of course with the understanding that fair value differ in bear and bull markets), for those willing to go through all the ups and down. It was $100/share under the assumption that RDRAM will capture a majority of the market in the foreseeable future. Just recently in another post I raised this to $150, under the assumption that DDR will be royalties bearing and a major part of the DRAM market (following the incessant incantation by our revered Carl) will be DDR. That was based on visibility of $4 and $6 per share respectively under both models and a PE on these future earnings of 25. 25 is really a "median PE", in a bear market it could easily go to half that much and an exuberant bull could double that PE. I would say that with 40% of the DRAM makers on board, the others will have to knuckle without a legal fight. Of course, a breach of the $32.5 level (the last presplit retrenchment from above 4400 pre split) would be an indication that some of these assumptions are faulted. Until such a breach, in the $44 to $50 area, if you are a long termer, you must consider the bu$$ very fairly valued. Zeev