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

To: Ibexx who wrote (7454)	9/25/1998 11:28:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 93625

Just asked a few questions.. Just curious, put a value on the stock. Tell us what you think instead of just posting your sly remarks. I would be seriously interested! Also, I never really saw myself as much of a leader on this board, if you know what I mean <g> Regards, MileHigh

To: Ibexx who wrote (7454)	9/25/1998 11:31:00 PM
From: Gary Wisdom	Read Replies (2) \| Respond to of 93625

READ THIS WSJ ARTICLE ON RAMBUS Note what I highlighted in bold. Very very interesting. Micron Tech Up 9% On Report Of Intel Taking Equity Stake>MU By Maria V. Georgianis NEW YORK (Dow Jones)--Micron Technology Inc. (MU) shares rose 9.3% Friday as several trading sources cited a trade magazine's report that Intel Corp. (INTC) is negotiating a minority equity stake in the DRAM chip producer. Spokesmen from the companies weren't immediately available to comment on the report published on the Internet by CMP Media Inc.'s (CMPX) Electronics Buyers' News. The stock started its rise after a press release on the story was issued after 2:30 p.m. EDT Thursday. Traders said the prospects of Intel investing in Micron would be a boost to the company that has suffered in the past few years from pricing pressures on memory chips. The report said that the move would give Intel a steady supply of memory and would infuse Micron with capital to pursue its expansion plans. Micron Technology's shares recently were up 2 7/8, or 9.3%, at 33 7/8 on Nasdaq volume of 5.5 million, compared with average daily volume of 4.4 million. Reached later, a Micron Technology spokeswoman declined to comment on the rumor. Intel and Micron Technology have had a close relationship beginning in 1995 when Intel was making board-level computers and actual PCs on an original equipment manufacturer basis, said Josephthal & Co. analyst Larry Borgman. Intel was buying a lot of Micron memory at the time, Borgman said, adding that he had no first-hand knowledge about the rumor. Intel has made investments in companies in the past in order to have a "strategic supply when times get tight," Borgman said, adding that supplies in DRAM are currently plentiful. "Maybe they want to be in the same position." In addition, Micron could use the money in order to upgrade the DRAM manufacturing facilities it is buying from Texas Instruments Inc. (TXN), and for its overall business, which is very capital-intensive, Borgman said. The speculation that Intel is considering an equity investment in Micron has been going around since Monday. Intel would have two reasons for an investment, according to tech traders and investors. First, Intel could rest easy that Micron will continue to make the investments needed to meet demand for DRAMs, an essential component in PCs. Micron has suffered through a prolonged slump for DRAM, or dynamic random access memory, chips as overproduction produced a severe glut. Prices for some DRAMs fell by almost 90% between 1996 and earlier this year. More interesting, although more far-fetched, is the idea that Intel is considering a Micron Technology investment to help out one of its partners, Rambus Inc. (RMBS). Rambus has come up with a design that is said to enhance memory chip performance, and Intel is hopping that the Rambus design will become a standard feature in DRAMs starting in 1999. But Micron Technology isn't thrilled about the idea of paying Rambus a royalty every time it sells a chip, according to the rumor mill. After all, Micron has been losing money on DRAMs anyway. Some have speculated that Intel is making the supposed investment as a way to ensure that all the memory chip makers, including the skeptical Micron, embrace the Rambus technology. A high-tech investor and an analyst, both of whom had heard the rumor, would not comment for the record. The story got out Monday, helping to lift shares of Micron 7%. Rambus stock rose 9% Monday and continued climbing Tuesday. Of course, there was other news helping Micron Technology, too. Last week, the company said it had seen an upward trend in DRAM contract prices for the first time in three years. In the so-called spot market - a secondary market that serves as a leading indicator - DRAM prices have risen for more than two months. - Maria V. Georgianis; (201) 938-5244; Chris Grimes contributed to this report.