To: Eric V who wrote (1796 ) 11/24/1997 10:34:00 AM From: Mike Winn Read Replies (1) | Respond to
This company has really picked the wrong time of the year to go with the secondary. At the volume it is going right now, the secondary may not be done til the end of December. Because of all this Asian turmoil, even Comdex is not helping out the tech stocks too much (http://www.news.com/News/Item/0,4,16733,00.html?latest). Over the weekend, I checked the stocks that had a secondary recently. SMOD and MRVC sold out real fast in a couple of days. PWAV seemed to take a bit longer, about two weeks to complete the secondary, but the price climbed along the way. Only one consolation for us is the price of SNDK seems to be held steady around the offering price of $28.exchange2000.com . It explained the model used by H&Q to justify the $100 target price for Rambus. The earnings by Year 2001 is actually factored in the stock valuation!!! I believe in the potential of RMBS but I think when they factored in earnings by year 2001, it's no doubt that that's real hype. At the current PE, RMBS will have to continue to grow at 40% per year after year 2001, which is unknown. The same H&Q analyst who is hyping RMBS presently has hyped Diana Telecom in the past. Diana went from a few bucks to $120, I think, before falling back to a few bucks again and got delisted from NASDAQ for fraud.
