Here's the current Vector Vest analysis on Rambus FWIW
Stock Analysis of Rambus Inc.
Thank you for requesting an analysis of Rambus Inc. from VectorVest ProGraphics. The ticker symbol for Rambus Inc. is RMBS.
RMBS is traded on the NASDAQ and options are available on this stock.
PRICE: RMBS closed on 19-Jun-1998 at $38.80 per share.
VALUE: RMBS has a Value of $11.10 per share. Value is the foundation of the VectorVest system.It is a measure of what a stock is
currently worth. Value is based upon earnings, earnings growth rate, dividend payments, dividend growth rate, and financial
performance. Current interest and inflation rates also play an important role in the computation of Value. When interest and/or inflation
rates decrease, Value goes up. When interest rates and inflation increase, Value goes down. Sooner or later a stock's Price and Value
always converge.
RV (Relative Value): RMBS has an RV of 0.90. On a scale of 0.00 to 2.00, an RV of 0.90 is fair. RV reflects the long-term price
appreciation potential of the stock compared to an alternative investment in AAA Corporate Bonds. Stocks with RV ratings above
1.00 have attractive upside potential. A stock will have an RV greater than 1.00 when its Value is greater than Price, and its Relative
Safety (see below) and forecasted earnings growth rate are above average. In some cases, however, a stock's RV will be above 1.00
even though its Value is well below Price. This happens when a stock has an exemplary record of financial performance and an above
average earnings growth rate. In this case, the stock is currently selling at a premium, and the investor is banking on future earnings
growth to drive the stock's price higher. This information is very useful not only in knowing whether or not a stock has favorable price
appreciation potential, but it also solves the riddle of whether to buy high growth, high P/E, or low growth, low P/E stocks.
We believe that RV ratings above 1.00 are required to consistently achieve above average capital gains in the stock market.
RS (Relative Safety): RMBS has an RS rating of 0.62. On a scale of 0.00 to 2.00, an RS of 0.62 is poor. VectorVest looks at
safety from the viewpoint of an equity investor (one who is buying stock of a company) rather than that of a purchaser of debt (one who
is lending money to the company). From this perspective, consistency of financial and operating performance, stock price appreciation
history, and price volatility are the key factors used in the evaluation of Relative Safety (RS). Debt to equity ratio, capitalization, sales
volume, business longevity and other factors are also considered, but to a lesser degree.
VectorVest favors steady, predictable performers. All stocks are rated on a scale of 0.00 to 2.00. A stock with an RS greater than
1.00 is safer and more predictable than the average of all stocks. A stock with an RS less than 1.00 is less predictable and riskier than
the average stock.
RT (Relative Timing): RMBS has an RT rating of 0.84. On a scale of 0.00 to 2.00, an RT of 0.84 is poor. RT is a fast, responsive,
short-term price trend indicator. It analyzes the direction, magnitude, and dynamics of a stock's price behavior over the last 13 weeks;
then reflects and projects the short-term price performance of the stock. Once a stock's Price has established a strong trend, it is
expected to continue that trend for the short-term. If the trend dissipates, RT will gravitate towards 1.00. Should the price change
dramatically, RT will notice the crucial turning point. When warranted, it will explode from a Price low and dive from a Price high.
All stocks are rated on a scale of 0.00 to 2.00. If RT is above 1.00,the stock's Price is in an uptrend. Below 1.00, the stock's Price is in
a downtrend.
VST-Vector (VST): RMBS has a VST-Vector rating of 0.79. On a scale of 0.00 to 2.00, an VST of 0.79 is poor. VST-Vector
solves the dilemma of balancing Value, Safety and Timing. Stocks with high RV values often have low RS values, or stocks withlow RV
and RS values have high RT's. How can we find the stocks with the best combinations of Value, Safety, and Timing?
The classic vector formula (square root of the sum of the squares) handles this problem. It combines a set of forces into a single
indicator for ranking every stock in the VectorVest database. Stocks with the highest VST-Vector have the best combinations of Value,
Safety and Timing. These are the ones to own for above average capital application.
GRT (Growth Rate): RMBS has a GRT of 44 % per year. This is excellent. GRT stands for forecasted Earnings Growth Rate in
percent per year. GRT is updated each week for every stock. Watch GRT trends very carefully. If the GRT trend is up, the stock's
Price will likely rise. If the GRT trend is down, the stock's Price will increase more slowly, cease to increase, or subsequently fall.
Recommendation (REC): RMBS has a Hold recommendation. REC reflects the cumulative effect of all the VectorVest parameters
working together. These parameters are designed to help investors buy safe, undervalued stocks which are rising in price, and to avoid
or sell risky, overvalued stocks which are falling in price.
VectorVest is tuned to give an "H" or "B" signal when a stock's price is approximately 10% above a recent low, and an "S" signal when
the stock's price is approximately 10% below a recent high. High RV, RS stocks are favored toward receiving "B" REC's, and
sheltered from receiving "S" RECs.
STOP-PRICE: RMBS has a Stop-Price of$ 38.80 per share. This is $0.00 or0.0% belowits current closing Price. VectorVest
analyzes over 6,000 stocks each day for Value, Safety and Timing, and calculates a Stop-Price for each stock. These Stop-Prices are
based upon 13 week moving averages of closing prices, and are fine-tuned according to each stock's fundamentals.
In the VectorVest system, a stock gets a "B" or an "H" recommendation if its price is above its Stop-Price, and an "S" recommendation
if its price is below its Stop-Price.
DIV (Dividend): RMBS does not pay a dividend. VectorVest focuses on annual, regular, cash dividends indicated by the most
recent disbursement. Special distributions, one-time payments, stock dividends, etc., generally are not included in Dividend (DIV).
DY (Dividend Yield): RMBS has a DY of 0.0 percent. This is below the current market average of 1.3 percent. DY equals 100 x
(DIV/PRICE), and is expressed as a percentage.
EY (Earnings Yield): RMBS has an EY of 0.88%. This is below the current market average of 5.17%. EY equals 100 x
(EARNINGS PER SHARE/PRICE), and is expressed as a percentage.
EPS (Earnings Per Share): RMBS has an EPS of $0.34 per share. EPS stands for leading 12 months Earnings Per Share.
VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year
earnings forecasts.
P/E (Price to Earnings Ratio): RMBS has a P/E ratio of 113.63. This ratio is computed daily based upon Price and EPS. P/E =
Price/EPS.
GPE (Growth to P/E Ratio): RMBS has a GPE of 0.39. This ratio suggests that This ratio suggests that RMBS is overvalued.
Growth to P/E ratio is a popular measure of stock valuation which compares Earnings Growth Rate (GRT) to Price Earnings ratio
(P/E). A stock is considered to be undervalued when GPE is greater than 1.00, and vice-versa. VectorVest believes that RV is a much
better indicator of long-term value. The RV of 0.90 for RMBS is fair.
DS (Dividend Safety): RMBS has a DS of 0. On a scale of 0 to 99, a DS of 0 is poor. DS is defined as the assurance that regular
cash dividends will be declared and paid at current or at higher rates for the foreseeable future. Stocks with DS values above 50 on a
scale of 0 to 99 areabove average in safety.
RISK (Dividend Risk): RMBS does not pay a dividend. All stocks in the VectorVest system that pay dividends are classified as
having Low, Medium or High Dividend Risk (RISK). Stocks with DS values above 50 are above average in safety. These stocks are
classified as having LOW or MEDIUM RISK. Stocks with DS values below 50 are below average in safety and are classified as
having HIGH Risk.
DG (Dividend Growth): RMBS has a DG of 0 percent per year. Dividend Growth is a subtle yet important indicator of a
company's historical financial performance and the board's current outlook on the future use of funds.
YSG-VECTOR (Yield-Safety-Growth Vector): RMBS has a YSG-Vector of 0.00. On a scale of 0.00 to 2.00, an
YSG-Vector rating of 0.00 is very poor. VectorVest combines Dividend YIELD, SAFETY and GROWTH into a single parameter.
YSG-Vector allows direct comparison of all dividend paying stocks. Stocks with the highest YSG-Vector values have the best
combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for above average current income and long-term
growth.
VOL(100)s: RMBS traded 410100 shares on 19-Jun-1998.
AVG VOL(100)s: RMBS has an Average Volume of 361636. Average Volume is 50 day moving average of daily volume as
computed by VectorVest.
% VOL: RMBS had a Volume change of 13.4% from its 50 day moving average volume.
OPEN: RMBS opened trading at $39.00 per share on 19-Jun-1998.
HIGH: RMBS traded at a high of $40.60 per share on 19-Jun-1998.
LOW: RMBS traded at a low of $38.60 per share on 19-Jun-1998.
CLOSE: RMBS Closed trading at $38.80 per share on 19-Jun-1998.
% PRC: RMBS showed a Price change of -1.5% from the prior day's closing price.
INDUSTRY: RMBS has been assigned to the Electronic (Components) Group. VectorVest classifies stocks into over 190 Industry
Groups and 50 Business Sectors.
RMBS has well below average safety with about average upside potential. It reflects a stock which is likely to give about
average,inconsistent returns over the long term. |
