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

To: puborectalis who wrote (17409)	3/16/1999 11:07:00 PM
From: pompsander	Read Replies (2) \| Respond to of 93625

The pace is picking up.... The Schlumberger news is terrific, and not just because it provides a solution to a nagging production problem. It demonstrates that innovative organizations are throwing resource at Rambus-created challenges. This is what being the "standard" is all about. The firm that can cure the bottlenecks in production, application, etc. gets to ride along with the success of the underlying Rambus product. More of this is bound to be coming - and you can bet each advance will be trumpeted for all it is worth.

To: puborectalis who wrote (17409)	3/18/1999 11:12:00 AM
From: RetiredNow	Read Replies (3) \| Respond to of 93625

I keep doing the math, but it seems too optimistic. Can someone check my calculations or assumptions and correct me: memory market size = $40B 2001 RDRAM mkt share = 31% (from eet.com 2001 RDRAM sales = $12.4B Rambus royalty avg = 1.5% Rambus RDRAM related revenues = $186M Rambus' current annual revenues from other products = $50M (est.) Total 2001 Rambus revenues = $236M Net (aftertax and everything else) Margin % = 50% Total 2001 Net Income = $118M Total shares o/s = $25M 2001 EPS = $4.72 current PE = 270 2001 PE assumption = 100 2001 est share price = $472 That's a 547% gain in 2 1/2 year's time! Kick ass. Are my assumptions too optimistic? Because usually I am more conservative than most. So I either am doing something wrong, or Rambus has explosive potential.