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

To: CHIP HUNTER who wrote (2631)	12/11/1997 3:51:00 PM
From: Jon Tara	Respond to of 93625

Chip, I did not say that RMBS is going to zero. I simply said that the downside is 47 points. Oops, 46 1/2. See, the downside is getting smaller as we speak. ;) You said that the downside is limited. That is incorrect. Now, more practically speaking, the downside of most stocks is limited to a fairly high percentage of the book value, say 80%. Under some market conditions, though, you might even find a stock valued at, say 80% of cash. What is the book value of RMBS? How much cash do they have per share? I'd say that the downside is probably - but not definately - limited to 80% of cash. I daresay that is considereably south of here.