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

To: 007 who wrote (6289)	8/15/1998 6:12:00 PM
From: JParks	Respond to of 93625

At $200/share, the PE=50. What's unreasonable about this? I also thought the DRAM market was going to be $70 billion by 2001? I would also assume that the DRAM market isn't the only market RMBS supplies. I also infer that 50% of the DRAM market will be conservative if Rambus takes off. With all of these possibilities, and if they can keep up R&D to win the next generation of memory after RDRAM, I will go out on a limb and say the stock price could be $1000/share by 2005, if the scenario I lay out below can be executed. Jim

To: 007 who wrote (6289)	8/18/1998 11:32:00 AM
From: mauser96	Respond to of 93625

RMBS isn't cheap at today's price. There's one flaw in your calculations... the DRAM market will continue to grow in the future as each generation of computers needs more memory. On the other hand, I expect that the average royalty received will be closer to 1% than 1.5%, but who really knows.Let's estimate earnings of $5.00 per share in 5 years. With a 25 P/E that gives a price of $125. I won't complain about that kind of return. Of course there are so many "ifs" in a projection like this that it's probably worth what you paid for it. good investing