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

To: Armand Perez who wrote (3821)	4/16/1998 4:02:00 PM
From: TEColeman	Respond to of 93625

Armand, Touche'. I find that there are two threads here with neither one talking to the other. Discussions on rational valuation are hardly addressed. I did take a long position on a small number of shares just to keep my interest up, but the bulls aren't even heeding the warnings of RMBS themselves. TEC

To: Armand Perez who wrote (3821)	4/16/1998 4:20:00 PM
From: MileHigh	Read Replies (2) \| Respond to of 93625

With what kind of nincompoops do you think you're dealing? You couldn't convince even Mile High of that? . Easy now....<g> MileHigh

To: Armand Perez who wrote (3821)	4/16/1998 5:55:00 PM
From: REH	Read Replies (3) \| Respond to of 93625

So you think deferred revenues are not certain? Please xplain what you think deferred revenues are? Then look back at my earlier post and see what I wrote, please don't mis-quote me, here's what I wrote: "In 1999 the semiconductor market will be about 80 billion, 10% market-share for Rambus would give Rambus a royalty of 120 million (based on 1.5% royalty). If we deduct 20% for G&A and R&D and 40% tax this should give Rambus an EPS of $ 2.16. Under this scenario stock price would be (relative to P/E): P/E 30: $ 65.00 P/E 40: $ 86.00 P/E 50: $ 108.00 Historical P/E's: Low: 333 High: 940 At a P/E of 130 (less than half the low to date) the stock price would be $ 281.00!!!! Let's say Rambus gets a 30% market-share in 2001 (and the semiconductor market in 2001 will be about 125 billion), then the numbers would look very impressive: EPS (same variables as first example): $ 10.80 P/E 30: $ 324.00 P/E 40: $ 432.00 P/E 50: $ 540.00 At a P/E of 130 the stock price would be 1,404.00!!!!" I'm a retired computer executive that sits on the board of 6 computer companies in Europe and the US, none of which I comment on. My purpose is to analyse the information I get and share my thoughts with this thread - what's yours? I do not think your nincompoops even though I find your latest post somewhat ignorant. And yes, I agree on your last point - glad you see mine. However, the market does not see it and the stock-price reflects this. I look forward to your explanation of deferred revenues based on US accounting standards! reh