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

To: MulhollandDrive who wrote (13217)	1/14/1999 1:12:00 PM
From: Dave B	Read Replies (1) \| Respond to of 93625

Must be getting close to earnings announcement -- the messages are flying fast and furious... <g> In reading the rest of the responses to James' question, I like REH's answer the best. It really is a software model where they get paid for every system on which it's installed. Some companies with similar models include Microsoft (OS and applications) and Intuit (pre-installed personal editions of Quicken). The difference is that while those guys have to "negotiate" with each system vendor, Intel has been nice enough to ordain that RMBS will be (eventually) pre-installed on all systems, and luckily for us they can do that. Dave B

To: MulhollandDrive who wrote (13217)	1/14/1999 1:21:00 PM
From: REH	Read Replies (1) \| Respond to of 93625

but my question is if it's "over-valued" at $110 according to Edelstone That's not what he said, he said in his report - shoot I'll just type the whole thing: Key points - RBMS has reached our $ 110 target, and we are downgrading our rating on the stock to Neutreal from Outperform - Although we believe Rambus' long term story and value proposition remain unchanged, we believe the 208% advance in RMBS versus a 17% increase in the S&P 500 since the stock reached a 52-week low on June 15, 1998 has served to discount a lot of positive near term news - We have maintained our earnings estimates, as well as our five-year compound annual growth rate of 75%. We expect to release our initial earnings estimate for fiscal 2000 after Rambus reports its December-quarter results, and due to easy comparisons and the initial ramp of Direct DRAM's in PC's, we expect earnings growth in fiscal 2000 to increase by around 150% over fiscal 1999. - We still expect Intel ($ 140, Strong Buy) to introduce its 820 (codenamed Camino) chip set that supports Direct Rambus DRAM's in the second quarter and ramp production in the third quarter. However, the precise timing and initial magnitude of the ramp will have a meaningful impact on our fourth-quarter fiscal 1999 earnings estimates for Rambus. - We believe that Intel's Developer Forum on February 23-25, 1999 in Palm Springs, California will provide the next major update for the upcoming Direct Rambus DRAM ramp. We continue to believe that Intel, Rambus, and the major DRAM and infrastructure support suppliers remain on schedule to begin to drive Direct Rambus DRAM's into the mainstream PC market in the second half of this year reh/long! ps sorry for typos