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

To: D.J.Smyth who wrote (2469)	11/24/1997 11:45:00 AM
From: TEColeman	Respond to of 93625

Surely you don't expect another 99% surprise! It is quite common for a company to have an earnings surprise when it is going from the red into the black. The overall change in earnings was 0.22 versus 0.20 expected (from -.18 last year to .04 this year). That only constitues a 10% increase over expectations. Granted, they have increased revenue by more than 100% and that is factored into my expectations for next year as well. I'm just saying that each succesive 100% growth period becomes less and less likely. The thing that I haven't don't know yet is the 843,000 in "Other Income". Do you know what that is? Without it, they would have been below their earning estimates. I believe that RMBS was undervalued coming out of bloody Monday, but for whatever the reason, it overshot it's value last Thursday. They're going to have to consistenly beat estimates for the next year to hold onto their present overvaluations. TEC