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

To: Craig Richards who wrote (2493)	11/26/1997 2:48:00 AM
From: John Wallner	Respond to of 93625

>Thanks for your evaluation. If the Rambus technology is only >good to save a few pins, why do you think Intel has endorsed it? Hello Craig, I will let Intel speak for themselves, but my company was looking into Rambus technology because it helps to solve a packaging problem: it reduces pin count and helps board level routability. Rambus would have reduced the I/O count of our ASIC, but the absolute bandwidth to the memory remained unchanged. In our case, we decided against Rambus, since it was cheaper and easier to pay for a larger package (with more I/O pins). At some point, the economics would favor Rambus in this type of cost balancing analysis, which is why I say that Rambus will find a niche in the industry. However, I see have seen nothing to justify their astronomical P/E. I expect that Rambus will remain a solid company, but that its stock price will soon drop to more reasonable, and sustainable, levels. Sincerely, John Wallner