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

To: starpopper who wrote (4933)	6/23/1998 9:12:00 PM
From: Gary Ku	Read Replies (2) \| Respond to of 93625

>>Gary...do this simple math! An estimated $30 Billion market...assume that RMBS gets only 50% of the market with a 1% royalty...that's $150 million in royalty revenue! Divide that by the outstanding shares and you get $6.6 for revenues per share on NEXT years numbers! With a profit margin that should command in excess of 50%, you get EPS of $3.3, compared to the current $0.20!!! Now tack on a modest PE of 50 and you come up with a RMBS stock price of $330!!!<< The PC market is shrinking, price is dropping. If all the other chip makers are sleeping, RMBS may get 1% royalty of the 50% of the market. Otherwise, RMBS product will be obsolete in three months. Don't forget this is one product company. IBM and Motorola are teaming up to make world's best and cheapest chips. Now, even the chip giant INTC is quite shaky.