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

To: MASTEQ who wrote (2569)	12/4/1997 9:15:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 93625

Hey Mike, You definitely hit the nail on the head. That is what scares me about this stock. All of its future earnings are priced into the stock today. Basicly, people's rationale is that if Intel makes Rambus technology standard in its motherboards then, Rambus will have 1-2% licensing fees off of most memory sold on the market. This could mean that Rambus turns into a $300-600 million revenue company, which is extreme growth from this point. But there are a whole lot of ifs currently. The long and short of it is that I've taken a sort of middle road. I bought some shares awhile back at about 56 and have held these shares faithfully. I am fully prepared to either lose this money or make a great profit from it several years from now. In addition, I have been trading the stock on these wild gyrations we keep seeing. For instance, I bought in at $42 and watched it rise all the way to $60, then I sold at $58 as it was coming down. So I keep a core holding and a trade on the side. What do you think of this strategy?

To: MASTEQ who wrote (2569)	12/5/1997 12:48:00 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 93625

>>what I want to hear about is "SHOW ME DA ERNINS!"<< Mike, nobody forces you or anyone to go long the stock. The market is forward looking. As an investor you seem to indicate that the earnings have to be there before you go long, the only problem with that is the stock price will have already reflected DA ERNINS, and I'm sure the argument will then be that the growth can not be sustained. Talk to some of the coulda, woulda, shoulda non-Dell or other high growth stocks non share holders. Again, if you think a stock is "over-valued" don't buy or go short, or just take your investment dollars elsewhere...bp