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

To: Tiffany Trump who wrote (3515)	4/2/1998 8:07:00 PM
From: dougjn	Read Replies (1) \| Respond to of 93625

Since you didn't ask me, I'll answer. <g> I think Rmbs probably has quite a bit of earnings in the bank. Enough to surprise a little or a lot, as they see fit. What they are likely to want is enough to somewhat juice, but not send into hyperspace, the stock. Because they would rather their graph looks more like Csco than Iom. The trouble with looking like an Iom is that you can have investors just plain give up on you until they are FORCED to change their mind. Once investors give up on you, the forcing gets a LOT harder. Especially in these days in techland, where stock options are how you pay key people, and there is lots of competition from steady upward marchers. So, they will probably surprise a bit. But now blow out. I could tell you why software/licensing type cos have more than the usual opportunities to manage earnings (more accurately, to bank some for future release if they wish to), but that is another story. Besides. This is all chump change these days. Rmbs is earning money right now on kiddy video games. Their stock valuation is based on the likelyhood of their partial or more complete conquest of the PC memory market, IP licensing wise. The value is in the indications for the furture market. Only. Like Lor/Gstrf. Like a development stage biotech, which is selling some legacy products as a cash cow, for a bit of current earnings. Like Qcom. Etc. Unlike the vast majority of the market. Doug