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

To: TEColeman who wrote (3267)	3/11/1998 1:26:00 PM
From: REH	Read Replies (2) \| Respond to of 93625

you're reading my numbers wrong! I do not say that rambus will have revenues of 8 billion but that their combined licences will sell for $ 8 billion worth of rambus-parts. their revenue from this I've set to 1.5% royalty or $ 120 million(which is lower than most of their agreements if you read their annual report. their profitability is really not a dream, I've set off for realistic G&A, R&D and taxes. Look at their numbers to date and you will see that its realstic. I know a P/E of 130 is high but in 1999 one will see much more clearly their future potential and this will sustain a high P/E. However, a more realistic P/E between 30 and 50 does also give some pretty impressive stock-prices. My 10 times in 3 years is based on a P/E of 30. Again, look at their 1.5% for revenue not the estimated combined revenues from their licencees of rambus-parts. reh