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

To: TEColeman who wrote (3163)	2/26/1998 8:38:00 PM
From: Estephen	Respond to of 93625

<"I still think the bulls are way too optimistic on this one. Does everyone still expect RMBS to be a billion $ in sales company? Or even 500 million?"> Did you expect microsoft to be a 250 billion co? How about intel to be a 25 billion company? Isn't it evident that a new generation of memory is mandatory? If rmbs got 1% of the dram market in 1997 at 30 million in revenues, Then 3% of the 1999 market will be around 100 million in revenues or better.

To: TEColeman who wrote (3163)	2/26/1998 9:05:00 PM
From: Rachel M. Kuecks	Read Replies (2) \| Respond to of 93625

Rambus licences its techmology and gets royalties. If they were to get $1 billion in revenues then profits would be close to $550 million (assumes around $80 million in expenses). obviously the stock would be worth many times its current valuation. There are projections of 50% of the memory market which would translate into $200 to $300 million dollars in royalties by 2001. If this comes to pass then it will be a very good investment. Note that they will also get royalties from logic chips.