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

To: Bill Harmond who wrote (2104)	10/25/1997 3:34:00 PM
From: Elmer	Read Replies (1) \| Respond to of 93625

William, I think you are right. RMBS has too much potential for money managers to let it get real cheap. I think the stock is a 'must have' for portfolio managers who want chip exposure. We will see if the stock gets down to $50 again. I read a report that estimated that RMBS could have $450 million in royalties in 2002. Now a lot can go wrong in five years, but if they continue to receive INTC backing, they will become the DRAM standard. I can't think of another company that has that kind of short term potential. If you assume that most of that royalty revenue goes right to RMBS's operating profit and put a multiple of 15 on it, you get a company worth $6-7 Billion in five years. That compares with about $1 Billion today. So if it works out, you're looking at 7 times your money in 5 years. At least I hope so. Cause I'm long. David