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

To: Gary Wisdom who wrote (4911)	6/23/1998 7:37:00 PM
From: starpopper	Respond to of 93625

Nervous about our rise?! Try following this reasoning! Try pulling up a one year chart of RMBS with the 50day and 200day moving average overlapped. If you use MSNvestor, scroll the period down from 1 year, to YTD, to 3months, to one week, and back...beautiful aint it!!! If you read it carefully you will be able to see that we are in the midst of a huge explosion to the upside that can technically, realistically, and in ALL probability, propel us to $75 on EXISTING information! When you begin to add the additional announcements sure to come regarding implementation schedules for RMBS technology by other vendors, along with a strong outlook for the new upgrade cycle just beginning and lasting well into 1999, on top of a bottoming out in Asia over the next 6 months, and topped off with some nice FROTH for our Rambus brownie from the YHOO's of the world...I SMELL $125 BY THE END OF THE YEAR!!! Yea, yea...I hear the groans, but bear with me! When the Rambus story first broke, investors were willing to assign a PE in excess of 600 (I'll come back to the PE later!). Of course the stock HAD to fall because of the opportunity cost associated with locking up funds in a company that had a CHANCE to garner a HUGE share of the computer market in TWO years! On top of that we have a MASSIVE drop in the DRAM market and persistent worries that another format might win-out over RMBS. Well, well...look at how far we've come in a year! In late July & early August 1997 the 50day and 200day moving averages were equal at about $40 while the stock was $55...a nice 37.5% premium...three weeks later it topped $80, a 100% premium to the intersection! Although shortlived, the 50day MA outpaced the 200day MA, and the stock rocketed! That reversed and the 50&200day MA were equal again in December 1997, as was the actual stock price, at $52-$53. For the next 6 months we went negative. We just blew thru the current 1998 50day MA at $41 (sounds familiar?!) to close just short of the 200 day MA of $47 yesterday, then today we shattered the 200day MA and closed more than 20% above it at $57.5! The 50day has been lower than the 200day for some time now, allowing me to theorize that we are in for a longer period of time for the 50day to out pace the 200day after they intersect in the next week or so at around an average of $50! Adding the 37.5% premium of last year to the estimated intersection price of $50 for the 50&200day MA, you get a stock price of $68.75. Remember that is only the beginning of the run...add the 100% peak premium of last year, to the anticipated intersection at $50 and you get H&Q's $100 price target! Now back to that PE in excess of 600; they were correct to assign it then based on the information, but didn't fully account for Mr. Markets ability to discount future earnings...especially when you have little to none at the time! Now with the inevitability of fulfilling the prophecy we can realistically command at least a PE of 600 like last year...and probably much higher...but at a PE of 600, you get a price of $120!!! LONGER, STRONGER, WITH CONVICTION, BACKED BY FACTS, AWAITING RESULT$$$!!!! I'LL SAY IT AGAIN...$75 THIS SUMMER, AND $125 BY THE END OF THE YEAR!!!!!!!!!! $weet Dream$ $tarpopper PS. "...why don't you come with me little girl, on a magic carpet ride,...well, you don't know what the..."! Pump it up a little louder and don't tell your age!!!