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

To: MileHigh who wrote (13204)	1/14/1999 12:27:00 PM
From: REH	Read Replies (1) \| Respond to of 93625

it is true that rambus has been put in the wrong categorie as far as valuation - a true model would be to valuate the co. as a software co as they actually sell "software" as in patented designs. A good comparison is any company that sells O/S's (like msft). Rambus sells an memory O/S and should be valuated accordingly. Thus - Edelstone is the wrong analyst the story has gotten nothing but stronger so I see no reason to sell but only to buy! reh

To: MileHigh who wrote (13204)	1/14/1999 12:46:00 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 93625

Milehigh, Just speculating that the "bar" is being raised so high for RMBS performance that it won't meet expectations. If you consider RMBS "just a semi-conductor" company, it is indeed over-valued relative to it's peers. That is not the view that I take, but if the broader market perception is such, no point in fighting it. Again, I'm not saying that I would exit the stock, but remember, relative to MY personal portfolio, I am purposely overweighted in RMBS because I concluded early that if RMBS became the industry standard the market would recognize that and RMBS would be able to command a very high multiple. Well, for now it appears to be next standard, but I'm wondering if my conclusion that premium on the multiple will be sustainable given the "valuation" downgrade. bp