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

To: dougjn who wrote (3340)	3/26/1998 2:57:00 PM
From: Shmulik	Read Replies (1) \| Respond to of 93625

Why the blowoff today with RMBS? Any news?

To: dougjn who wrote (3340)	3/26/1998 2:57:00 PM
From: MulhollandDrive	Respond to of 93625

Hey, you're preaching to the choir here. My point is that there 's a ton of timid money managers out there that will wait to see the sequential growth rate before they commit. I think they'll be committing at a much higher price than now, BWTHDIK. We're in total agreement that the real value in RMBS relative to the stock price, but for now the trend is still down and I'm convinced that it will take some hard numbers to reverse it.

To: dougjn who wrote (3340)	3/26/1998 5:02:00 PM
From: Elmer	Respond to of 93625

dougjn, I agree with your comments about earnings. RMBS has considerable deferred revenue on the balance sheet related to up front payments made by the DRAM manufacturers. In theory, these payments should be ratably released to earnings. But in practice, the company has a lot of latitude as to how it brings that revenue into earnings. So worrying about quarterly results is silly because, as you said, its all on the come. RMBS might actually want to disappoint because it brings the stock price down so that options are more economically meaningful to recipients. Finally, RMBS got a mention on page 123 of Geoffrey Moore's new book, "Gorrilla Game." But please don't buy for a discussion of the company as he spends one paragraph on RMBS. However, he calls it a Gorilla candidate, which anybody on this thread already knew. Regards David