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

To: MileHigh who wrote (14934)	2/2/1999 11:22:00 AM
From: Platter	Read Replies (3) \| Respond to of 93625

RAMBUS (RMBS) 74 7/8. They haven't really delivered on their great promise yet, but they get an upgrade this morning and are back in play. Before the open Tuesday, chip to chip interface technology designer Rambus (RMBS) was upgraded by Morgan Stanley Dean Witter from "neutral" to "outperform." This is enough to have the stock indicated 4 points higher. RMBS has been a hot stock on occasion, but has been beaten up lately, dropping from over 110 near the beginning of this year. That recent weakness probably gives more bounce to today's rating move by the prominent Morgan Stanley. Still, RMBS is not making much progress on the profit front. Their last five quarters profits are: eight, seven, seven, seven, and six cents. That hardly reads like a high-growth technology company. It also means that RMBS trades at about 260 times trailing earnings. So, this is still treated like a company of the future. And indeed, they are widely considered to have an excellent position in their industry, with top partners and excellent prospects. Yet, Briefing.com is somewhat skeptical about the valuation placed on RMBS given their very modest earnings trend while many technology companies are cranking it up. At the least, investors should realize that while RMBS trades on the hard-to-quantify future prospects, it will continue to be a very volatile stock. Good news, such as this morning's upgrade, will give it a solid boost. Any bad news can give it a hit. From Briefing.com