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

To: Scumbria who wrote (64181)	1/11/2001 6:29:04 PM
From: wily	Read Replies (1) \| Respond to of 93625

Scumbria, yes it does, and excellent point. I saw that and then forgot about it. $21MM in royalties with 40% of the industry signed up. Multiply by 4 to get yearly number. Multiply by 2.5 for when the others sign up. Multiply by 2 for higher DRAM prices (optimal, non-sustainable scenario) Multiply by 1.3 for when DDR is a bigger percentage (higher rate, supposedly). = $546MM Optimistic net/net = 55% (Assumes 0 cost of revenues and 10% total operating expenses) = $300MM =$3.75/share (and growing at 15%/year) So, OPTIMISTICALLY, you could look forward to a stock price of $56 in the next couple of years. But, with a more realistic average DRAM price, looking at more like $37.