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: Don Green who wrote (77597)	8/17/2001 2:28:05 AM
From: The Prophet	Read Replies (4) \| Respond to of 93625

They are cheap based on the probability of future revenue streams. Legal: 50% likelihood that RMBS prevails on DDR claims and wins right to approx 2% of DRAM memory market. Assume $30 billion x .02 x .60 (taxes and expenses) /100 million shares x 20 (p/e) x .5 probability = share price value of legal of $36. Technology: 50% likelihood that RMBS obtains 20% or more market share in DRAM going forward. Assume $30 billion x .02 (royalty) x .20 (market share) x .60 (taxes and expenses) /100 million shares x 20 (p/e) x . 5 probability = share price value of technology of $7.