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

To: SBHX who wrote (72658)	5/12/2001 1:49:30 PM
From: The Prophet	Read Replies (2) \| Respond to of 93625

SBH: You say, "SDR is selling the way it is now because supply is not increasing. If the supply goes up, the price will also rachet down." I'm not sure what evidence you have that supply is not increasing. When oil fell below $15 a barrel, it continued to fall under $10 because the oil producing companies had to pump more oil to meet increased demand and keep market share. As for price continuing to fall, that is very possible, but that too will spur production of RDRAM. Your statement that, "If you look at just the pure economics alone, the SDR->DDR switch is the most logical one for SDR fabs," is a complete non-sequitur. It is not supported by any argument. If the cost to produce RDRAM is roughly 20% more than SDRAM/DDR but one can get premiums of more than 100%, why in the world would one choose to make DDR over RDRAM.