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

To: csecfp who wrote (71503)	5/1/2001 11:41:36 PM
From: Dan3	Respond to of 93625

Re: Rmbs should still have a fair value of .... RMBS earned $0.08 last quarter while receiving royalties on SDRAM and DDR from more than a third of the industry, plus all industry RDRAM. They've repeatedly said that most of their royalties from from SDRAM (which is why revenues were down last quarter even as P4 caused a blip up in RDRAM sales - the decrease in SDRAM prices reduced Rambus's total revenue even though additional SDRAM producers began paying last quarter. If Rambus loses this case, everything goes away except the RDRAM, leaving them with 4 or 5 cents per quarter in earnings (and that only if they can get their legal bills down). Even if they somehow stayed at 8 cents per quarter it only gives them $0.32 per year. Their growth prospects are way down now that they've alienated the industry so a General Motors or bond fund P/E of 6 or 8 would be reasonable. Which gives a share price of $2 to $3. Dan