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

To: MileHigh who wrote (13210)	1/14/1999 12:50:00 PM
From: Ian Anderson	Respond to of 93625

Another contribution on the valuation question. It has been suggested that RMBS is an IP company, and I agree. Basically their business model "taxes" every PC made in the next 3 years. I have no doubt that Rambus will become the dominant technology. My guess is that they will average around $2 per system. But contrast that with another IP company (my current employers), PTEC, who make the BIOS for more than half the worlds PCs. My guess is that their "tax" will be around the same. They are currently trading at a PE of around 16. Where is the logic in that? Ian