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

To: Don Green who wrote (86022)	4/14/2003 12:50:47 PM
From: Don Green	Read Replies (1) \| Respond to of 93625

Schaeffer's Market Observation Features RMBS 14 Apr 2003, 12:34pm ET CINCINNATI, April 14 /PRNewswire/ -- Today's Market Observation features Rambus (Nasdaq: RMBS). Schaeffer's Market Observations are market-based reports that provide insight and analysis from a unique and unbiased perspective. Market Observations are published on www.SchaeffersResearch.com Stepping Back into the Limelight Rambus develops and markets chip-to-chip interface solutions that enhance the performance and cost effectiveness of its customers' chip and system products. The company is scheduled to report earnings this afternoon following the close of the market. The Street currently expects the California-based firm to post a profit of five cents per share. This is a 40-percent drop from earnings of seven cents per share for the same period a year ago. However, RMBS has surpassed the consensus estimate for the past four quarters, according to Yahoo! Finance. Once a tech high flyer of the late 90s, this firm has quickly fallen from Wall Street's good graces. In fact, there are currently no analysts rating the shares, according to Zacks.. Yet another strong earnings report and guidance going forward may finally draw some interest back to the stock, which could help to propel it higher over the near term. Options players have also grown skeptical of this one-time tech favorite. Its Schaeffer's put/call open interest ratio of 0.43 is higher than 88 percent of those taken over the past 52 weeks. This pessimistic sentiment has bullish implications when viewed through a contrarian lens. What's more, speculators have been bidding up puts heading into the company's earnings report. The implied volatility for the equity's April 12.50 put stands at 101 percent compared to its front-month 17.50 call of just 85 percent. This means that demand for puts has been dramatically higher than calls. Technically speaking, the shares have displayed impressive strength over the past several months. RMBS has Outperformed the Nasdaq Composite on a monthly basis since June. Click on the following link to see the Monthly Relative Strength Chart of RMBS versus the Nasdaq Composite since June 2002: schaeffersresearch.com. In addition, the security has been rising on support from its 10-week and 20-week moving averages since mid-October. Click on the following link to see the Weekly Chart of RMBS since October 2002 with 10-Week and 20-week Moving Averages: schaeffersresearch.com. RMBS is also trading above peak April call open interest at the 15 strike of 7,160 contracts. Peak back-month call open interest also rests at the 15 strike, with more than 8,138 contracts. The remaining overhead call open interest is relatively light, offering little in the way of potential options-related resistance as the shares continue on their climb. The combination of pessimistic sentiment and technical strength leaves the security poised for a sharp move higher. The only ingredient needed now is a catalyst. A strong earnings report and/or guidance for the rest of the year could help to springboard the equity to a new 52-week high.