Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: LoLoLoLita who wrote (2534)	11/29/1997 8:05:00 PM
From: Zebra 365	Read Replies (2) \| Respond to of 93625

Very good posts all. I'm neither short or long this stock right now and I'm looking for a place to trade it. Based on current fundamentals it is hard to price this stock above $10, so of course all of the price above that is based on future expectations. I'm not saying those expectations are unwarranted, but they are based on events that have yet to occur. About H&Q, they were in on the IPO, have they disclosed how many shares they hold that were just released from lockup on Nov 17th? Because of a potential conflict of interest, I would not put too much stock in their $100/share projection until I know just what their financial position is in this stock. About INTC, the investment. INTC has options on RMBS stock but no great capital outlay or equity position, hardly an unrestrained enthusiastic endorsement. About INTC, the contract. INTC has a non-exclusive agreement to use the RMBS design, there will be no significant revenues from this until 1999, a long time in the technical world. Remember, RMBS is a design firm only, not a manufacturer. They will live on high margin royalties, or not at all. As you can see by the post, my tendency is to short this, but the stock performance since the IPO shows that this is a high-risk, high-reward play either way. My strategy would be, and will be, to short over 70, go long under 50, and be very nervous in the middle. I think that will be a good strategy for the next three months here. My opinion only, of course. I think you can get burned here, either way, if you pay too much attention to the fundamentals. Zebra