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

To: Ibexx who wrote (2871)	1/27/1998 9:23:00 PM
From: Jeff Jordan	Respond to of 93625

ÿ Intel Reconsiders Rambus Transition (01/27/98; 11:08 a.m. EST) By EE Times Staff, EE Times Intel may be rethinking its plan of shifting the PC industry to Rambus-Direct DRAMs. Sources told EE Times Intel is developing a memory-interface specification, reportedly called P133L, that will support both Rambus-Direct and SDRAMs. It was unclear whether the spec would include double-data-rate SDRAMs. The interface was said to be under development for an unannounced core-logic chip set. Rambus' relationship with Intel is one of the factors behind the company's strong stock performance since its May 1997 IPO. The company has also put up some stellar earnings as a public company. Intel would not comment directly on the report. But a company spokesman said, "We are looking at ways to make a smooth transition from SDRAM to Rambus-Direct. The impetus is to make sure there are no hiccups that would prevent a higher-performance platform from getting to the end user." The spokesman emphasized any such move would be a transition strategy, not a rejection of Rambus. But observers outside the company said permitting OEMs to choose between SDRAM and Rambus-Direct amounted to a recognition by Intel that the Rambus design could not be imposed on PC makers unconditionally. DRAM vendors are reportedly concerned about margins on Rambus-Direct parts in the 1999 to 2000 period and are encouraging Intel to slow the transition. Systems vendors reportedly expressed concern about the abrupt move from the SDRAM road map to an entirely different type of memory interface. In morning trading, Rambus [RMBS] was up 5/8 to 41 5/8, and Intel [INTC] gained 7/8 to 78 9/16.

To: Ibexx who wrote (2871)	1/27/1998 9:53:00 PM
From: REH	Respond to of 93625

I don't think so, the market today goes way beyond the professional investor. I don't think the average investor or potential investor read the publications immediatly - I think we will see the effect of these articles for the rest of the week as people become aware of them.

To: Ibexx who wrote (2871)	1/28/1998 2:32:00 AM
From: Michel Bera	Read Replies (2) \| Respond to of 93625

Thread, May I suggest some comments on these INTC/RMBS news. On the negative side : - there is a clear delay now in RMBS royalties ramp-up. As a french proverb goes, "to-morrow, you get your beard cut for free", which means that 'yes, you "get" the money, but you just have to wait some more again and again'. We heard some rumours on this some time ago here. - as Betty stated some time ago, since its IOM like roller-coaster crazy ride, the stock momentum has been broken, and a kind of bad reputation attached to it, even for brave short cycle traders. On the positive side (I still hold my RMBS as an investor, until next August as a one-year rule of thumb rule - yes, I know, I bought at $60, around the market top, I am just learning here): - smoothing the transition may be a good move : you show the high end BMW, and you sell the low-end dream of it. And people may want to buy the high-end immediately, given a choice between a low-end SDRAM PC and a high-end RDRAM one. I have seen it in monospace vans, where the high-end model was the one that sold best, to the surprise of marketing VPs. - we have seen nightmarish delays in this industry before : just a tiny company named Microsoft got us used to it (remember when "vaporware" word was coined ?) - It is of INTC's interest to put pressure on RMBS. I just hope that RMBS gets in reaction strong second revenue streams, such as TI or Nintendo in its short future. Set-top boxes (some of them non Intel based) may be on their way; An european company makes the ARM chip that was used for the Nintendo64 gamestation. ARM chips may be used in future european appliances too; that might use RDRAM designs. And Europe business state is countercycling now Asia. - I agree with many people in this thread that Ibexx comments have not been that wrong on the high-tech market until now, but we may get somehow personal here. - RMBS price may have already reacted to the rumour; Will "sell on the rumour, buy on the news" true here ? Well, those were my two cents. MiB