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

To: Jeff Jordan who wrote (2545)	11/30/1997 1:52:00 PM
From: LoLoLoLita	Read Replies (1) \| Respond to of 93625

>This makes no sense! The fact is Intel chose to use the Rambus >technology in its next generation designs. They are working w/Rambus >and other companies like Kingston testing these applications right >now. Other Companies have chip sets that use 100mhz bus speed. I >think you will see some rambus modules on boards by the end of 1998. Jeff, "end of 1998" is ages away for this volatile tech sector IPO. I'm hoping to cover my short well before summer of 1998. I was just investigating/speculating on a worst-case scenario based on the thought expressed some days back on this thread that the INTC interest in RDRAM was motivated by their need to pressure the DRAM makers to make faster memory chips. The SEC filing in the RMBS-INTC agreement doesn't have any dates in it; they're ***'d out as confidential. If you're right and it goes into production in 1998, that would be very good for RMBS--and I hope that I'll be able to cover my short position before such an announcement. If such news comes out soon (before my covering), then I will have to keep my fingers crossed and hope my broker doesn't call in my short. I recognize that the INTC deal with RMBS is stronger than most simple supplier-buyer agreements because INTC can appoint a RMBS Director--so these companies are planning on a long-term partnership, which is very bullish for RMBS. But I found that 20% minimum criterion for future product mix to be very noteworthy. If, as seems likely, there is an open (and free) IEEE standard for a fast(er) DRAM bus available before INTC begins RMBS production, wouldn't it make sense for INTC to use both? And, if so, INTC could maintain their good relations (per the contract) with RMBS even if only 20% of the INTC production used the RMBS design. In such an event, RMBS future earnings would be severely impacted negatively. I'm no expert on DRAM bus technology, but it is an indisputable fact that the "WINTEL" platform has consistently evolved (and grown) in a way that favors the use of open standards. There are very few proprietary technologies on a PC-compatible motherboard for which there are no competing designs. And not even INTC can keep their monopoly on advanced CPUs. Regards, David