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

To: MulhollandDrive who wrote (6776)	8/31/1998 11:02:00 AM
From: REH	Respond to of 93625

fredhager.com - very interesting site - belives the hottest stock in the world is Rambus reh

To: MulhollandDrive who wrote (6776)	8/31/1998 11:09:00 AM
From: REH	Read Replies (2) \| Respond to of 93625

From fredhager.com I believe Rambus is one of the very few companies that have the potential of a 10,000% return on your investment over the next ten years. This means, that an investment of $10,000 would turn into one million dollars. You can get all the details about Rambus on the following: Rambus. I will just cover the basic concept. Microprocessor speeds have evolved pretty much according to Moore's law, that is their speed has doubled about every 18 months. The problem is, the speed of memory has not kept pace resulting in a bottleneck and preventing data from getting to and from the processor as fast as the processor can process it. Here is where Rambus comes in. Rambus designs, develops and licenses high-speed memory interface technology, which speeds up data transmission 8 to 10 times. In order to take maximum advantage of the Rambus technology, the processor, the bus the interface and the memory must be licensed by Rambus and manufactured according to Rambus specifications. I believe that Rambus is the only cost-effective high-speed memory solution and will therefore become the new memory standard. The potential is therefore huge. In 1997 the semi-conductor market was 136 billion dollars. The market is growing at about 15 to 20%, which means the semi-conductor market will exceed 300 billion in the year 2003. That is five years from now. If the Rambus market share were 20% or 60 billion their earnings per share would be about 16 dollars, or 200 times Rambus's 1997 earnings. To arrive at the stock's price in 2003 you can take your own shot at the multiple. In ten years the semi-conductor market is expected to exceed 600 billion dollars and there is a good chance that the market penetration of Rambus could be 30%. That would imply royalties on about 180 billion dollars. [I am aware that 1998 is negative. However, it does not change the ten Year Projection] Be aware that any long-term estimate is fraught with many hazards and is subject to unforeseen events. Be sure to invest no more, than the amount that lets you sleep at night. Everyone has a different level of risk tolerance, make certain that you know yours. As unreal as this projection seems today, it is not more unreal than my 1991 projection about Bill Gates net worth in 2001. His net worth was four billion in 1991 and I said I expected him to be worth one hundred billion in 2001. Now that his net worth is substantially over fifty billion, it is only a question by how much Bill's net worth in 2001 will exceed my projection.

To: MulhollandDrive who wrote (6776)	8/31/1998 11:35:00 AM
From: KM	Read Replies (2) \| Respond to of 93625

I sold my Dell at 119.875 this morning and five minutes later, it was 111 and something, on the way down to the 106's! Yet, I still think it and RMBS will hold up reasonably well through all of that - can't say that about much else.