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

To: abuck95 who wrote (13739)	1/16/1999 4:58:00 PM
From: unclewest	Respond to of 93625

gosh, i turned off the computer a few days ago. tired of clinton's mess and brazil old news so went to visit a friend in georgia. spent a day in daytona. too cold for me, so i drove back south. opened si and there are 505 new rmbs messages since i left thurs. i read about 12 from the regulars. see we are down a bit. i see it like this, the price got a little ahead of itself, backed off, and some lucky folks got a shot at some cheaper shares. none of us are in this for rmbs 109 in jan 1999, at least i'm not. it is the possibility of rmbs 1000 or 2000 or 3000 in 2003 got me in. that is what is keeping me in. i particularly liked this cowen quote posted by reh. From the SG Cowen report: Earnings are expected to be flat for next two or three quarters. In contrast to our expectations of a penny increase in the next couple of quarters, management indicated that several factors would keep EPS more flattish. Those factors include: a seasonal slowing in royalties from Nitendo 64 game shipments, fallout in royalties from Cirrus and Chromatics as they exit the PC graphics and multimedia business, and lastly the increased level of spending for R&D as Rambus deploys additional resources to help its customers finanlize their designs. Quite frankly, the only one new news here is the additional R&D expenditures - which we view as a net positive because it is merely an indication of the overwhelming support in adopting/accelerating the Rambus standard. While we had to trip our 1999 estimates a bit, the reason to buy Rambus has nothing to do with the near term earnings outlook but based on the belief thar Rambus will be the defacto memory standard in the DRAM industry and that a highly profitable hockey stick ramp will commence in 2000 and accelerate in 2001 The hockey stick ramp remains on track for calendar 2000. Investment in Rambus should be based on the belief that its DRAM architecture will be used by the PC industry for mainstream computers. We believe that will be the case based on the strong outward backing from Intel and the fact that virtually every major DRAM manufacturer has licenced the Rambus technology. The variable in our opinion is not if Rambus will be successful but when the hockey stick ramp begins for RDRAMs. That will ultimately be timed with the introduction of INTC's Camino chip-set which is scheduled for shipment sometime in 2H99 with volume production shortly after. Further out, we envision Rambus DRAM being used in virtually all mainstream PCs - sometime in late 2000 and into 2001 - at which point the earnings from royalty revenues could be staggering. That is the reason to invest in Rambus and the basis for our Buy (2) rating. unclewest

To: abuck95 who wrote (13739)	1/16/1999 7:41:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 93625

My thought re. Verticalnet or any other IPOs: Any IPO issues readily available (e.g. broker trying to push on clients) ARE PROBABLY NOT WORTH HAVING--sort of like the Marx brothers' joke that he wouldn't want to join any club that is willing to accept him. <g> I'd say, for the most part, you wouldn't be making a serious mistake by refusing it. In the only instances where I got in at official IPO shares (NSCP, ATHM, RMBS), the brokerage acted as if it had been a big, big favor done to me, one that I should be indebted for the rest of my life. Ibexx PS: Friend of mine told me that Morgan Stanley (co-underwriter)required clients to have a minimum balance of $1 million before allocation of RMBS shares at $12.