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

To: MulhollandDrive who wrote (14768)	1/30/1999 5:37:00 PM
From: sam	Read Replies (2) \| Respond to of 93625

First, most of the shareholder base is Institutional -- probably (though not necessarily) unmargined. And even if they are margined, I think its a safe assumption that these investors will not be subject to a Schwab margin call. ;) Second, Schwab and other brokerage houses are concerned with the huge volatility in internet stocks. They suspect that internet stocks are way, way too high...and if they fall (and customers are margined), the brokerage house will be left holding the bag. A wise concern, although I am not of the opinion that that internet "bubble" will "burst." Though it certainly could if inflation would rear its ugly head and/or interest rates were to suddenly rise. Third, RMBS is not considered an internet stock, although it could be in that category. Regardless, it's volatility is nothing compared to Broadcast.com, Amazon and the like. Fourth, the rise in margin equity requirements has been occurring for about a month now. In my opinion, it has absolutely nothing to do with RMBS most recent correction.