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

To: Estephen who wrote (15169)	2/5/1999 7:05:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 93625

Steven, I think everyone who participates in this thread, including many other lurkers, agree with what you said. Talking the stock up as it drifts lower also might make one feel better. I am long, but the charts have been looking terrible. Sure this can change at any minute and for all I know it changed today. BMO is that we broke down to a new low (72) since the new high, this is hardly a bottoming formation. I also have a tremendous amount of respect for the market itself discounting news LONG before it is commonplace with the public. What's my point? Who knows <gg> I hope you are right as I am long and do not want RMBS to drift lower, but I have sneaking suspicion it will go lower...These tech conferences will be key to RMBS- could yield good as well as cautious news. Regards, MileHigh

To: Estephen who wrote (15169)	2/5/1999 7:42:00 PM
From: Zeev Hed	Respond to of 93625

Steven, I think some people will disagree with you that the dram market is $60 billions and other would disagree with you that RMBS will take 50% of this market (I would not). But more importantly, RMBS is not even a fabless outfit, they get paid Royalties which, when times in the dram business are good, are much lower then manufacturer's profit margin (and when times are bad, RMBS still get paid). Thus when you tone down the forecasts, you will see that the current valuation is not terribly low, just slightly low, and bear markets are known to bring about extremes in valuation. Furthermore, not many people see RDRAM capturing 50% of the DRAM market for at least 4 or more years, thus you would not want to value RMBS at a capitalization of $5 billions, yet... Zeev