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

To: Wiski1313 who wrote (3314)	3/21/1998 3:24:00 PM
From: HerbVic	Read Replies (1) \| Respond to of 93625

>>How will an industry slowdown will effect Rambus..We shall see. << I don't perceive it as an industry slow down. The trouble in the sector is an inventory quagmire brought on by overly optimistic expectations of increased box sales inversely tracking lower prices. The problem is that the PC market is not as elastic as predicted. Instead of lower prices producing a corresponding increase in unit volume, it is lower prices producing a weak increase in unit volume thereby eroding margins. IMHO, Rambus is in the same position as Microsoft during this price squeezing frenzy to correct inventory overruns. Wall Street seems to have not caught on yet, but revenues here should get a boost over the near term. If there is a downside in this for Rambus, it is the potential for these firesales to burn future PC market oxygen causing a vacuum in demand late in the year going into 1999. Interesting though that AAPL, as yet, has not experienced inventory buildup. Does anyone know about Dell? I understand that their tight flow through system is serving them well. Good hunting, HerbVic

To: Wiski1313 who wrote (3314)	3/22/1998 9:13:00 AM
From: Michael H. Dragon	Read Replies (1) \| Respond to of 93625

I bought into rmbs for the first time last week at 41 1/4 and I can tell you if your looking for a stellar earnings report next month it is not going to happen.They already said that earnings will be essentially flat.Earnings were artificially inflated last quarter due to Christmas sales of Nintendo64's.I bought rmbs last week because I think they will have a positive cc when earnings come out and it has tested the 40 level more than once and rebounded.If it gets a bounce above 45 I'll probably sell and look to get back in somewhere down the line.On a side note did anyone see the ceo of Insight on cnbc when he said business is strong and has never been better?If nsit can ever close above 43 I do believe it will take off to atleast 55.Checkout their chart and let me know what you think. Mike