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

To: pompsander who wrote (18463)	4/10/1999 5:25:00 PM
From: Steve Lamont	Read Replies (1) \| Respond to of 93625

Money Mag Reference: Our last pick is pretty clearly the riskiest. Rambus, which designs technology that let microprocessors and memory chips exchange information more quickly, has the smallest revenue base , $40 million, and the highest projected long-term - annual earnings growth rate, 75%. So the analysts who follow the company have high expectations. That means Rambus could increase earnings 60% next year and the stock could still get hammered. But Rambus also has the lowest PEG ratio, just 0.6. So the stock should move if the company hits Wall Street's high growth targets. There are good reasons to think Rambus can. Rambus tackles a critical PC problem. The speed of the micropro- cessor-your computer's brain-has increased tenfold since 1994, but the speed of memory chips hasn't kept pace. That imbalance is severely limiting the performance of new high-end PCs. Your computer can think fast enough to process complex data such as multimedia software, but it must pause repeatedly as it presents it to you. Enter Rambus. The Mountain View, Calif. firm got its first big design win in 1995, when Nintendo adopted its technology for the N64 game console, the company went public in 1997. Since then, Intel has adopted a Rambus design for PCs, and manufacturers that account for more than 95% of memory-chip production have made commitments to the company. That's why analysts are projecting such lofty earnings growth. Briefly above $100 a share earlier this year, Rambus stock fell when Intel delayed its rollout plans for chips using Rambus designs. At a developers forum in February, however, Intel said it would launch such chips in the fall. Compaq and Dell have said they will use the technology too. Ram- bus recently traded at $62, or 42 times 2000 earn- ings. Again-not cheap, and you can see the kinds of short-term swings the stock can face. But the company has the right clients. And unlike that Internet IP0 your neighbor has been telling you about, Rambus has a product that can't be cloned by a couple of guys in a garage.

To: pompsander who wrote (18463)	4/10/1999 5:32:00 PM
From: Fiscally Conservative	Read Replies (1) \| Respond to of 93625

Whoever gets the 800 megahertz down pat will have the larger market share when its released. Allowing a 700 megahertz chip design can create problems in the short term in the stock. Why would an oem.use a 700 platform when there will be some oem's producing at 800. The decision the oem's make will be a gamble;can the chipset sell at 700 as opposed to buying at 800. The boxmakers will also gamble in deciding to market both in their boxes,but maybe both designs can co-exist-differential pricing in market. The more I examine this new bit of info,the more I'am realizing that Intel is not backing off.In not having to seriously upgrade manufacturing at large costs to the producers there can be a 700chipset create and marketed.I expect Rambus will be pushed down the oem's throats and consumers will decide which design chip they want. Interesting!

To: pompsander who wrote (18463)	4/10/1999 6:09:00 PM
From: MileHigh	Respond to of 93625

OTOT pomp, CPQ= old strategy of channel sales via distributors/agents/wholesalers= added cost= drag on margins as ASP's fall. Dell= new model-- internet/direct, lower cost structure, DELL is best positioned to compete IMHO. Still although business though. MileHigh

To: pompsander who wrote (18463)	4/11/1999 4:16:00 AM
From: Alan Hume	Read Replies (1) \| Respond to of 93625

Hi Pomp and Mile, I think the 700MHz news is EXCELLENT, Allow me tell share my thoughts with you: After much consideration, the statement from INTC last week that Caminio/RDRAM was "on track" was the only statement they could have made. Here are the options 1) If they had not mentioned RMBS it would have been the last nail in RMBS's coffin in the eyes of the skeptics 2) If all the problems had been solved, they would have said so, this would have served to get the necessary investments in the industry moving again 3) The problems are not yet solved, so the statement is that we are on track. Now if boxes are going to be on the shelf by October, all the technical and specification issues must be put to bed by June, if not we are looking at a delay until at least q1/00. Now INTC would hardly relax the spec to allow 700MHz at this stage of the game, if June was not the realistic freeze date. I'm guessing the 700MHz creates a higher yield and reduces the groans from the DRAM manufacturers Alan