Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zeev Hed who wrote (18769)	4/15/1999 5:18:00 PM
From: MulhollandDrive	Read Replies (3) \| Respond to of 93625

Zeev,, When you say the "Naz turnaround few hundred points in the next two months."..which direction are you referring to? bp

To: Zeev Hed who wrote (18769)	4/15/1999 5:36:00 PM
From: Greg Jung	Respond to of 93625

Zeev, as anecdotal counter to your argument (not that anyone should believe any level is "rock solid") - 3com through October turmoil. It was 23-30 range throughout while rest of Naz sank. Of course they have cash flow and 2-digit PE. Rambus lives in a glass house, including floors, and any little crack can quickly develop into a crash. So I would agree with a wide range - more on the downside than to the up - until situation is better clarified. I am aggressively selling calls against the long stock position - hopefully it will maintain pricing enough to feel a bit better about holding it. Greg

To: Zeev Hed who wrote (18769)	4/15/1999 6:29:00 PM
From: Al Serrao	Respond to of 93625

Zeev, thats a very good question. I would rather think of this as more of a test of INTC rather than RMBS. Will INTC stay above 50 when we get into the Tech sell off or summertime blues or even before? We'll see. But the way I see it, INTC needs RMBS as much if not more than RMBS needs INTC. What could entice buyers to buy the high end CPU where INTC's margins are? There has to be a quantum leap and the quantum leap is RMBS,not for next year but for the next 3-5 years. And INTC is planning some really blockbuster upgrades. They see the demise of their position clearer than anyone and that's what makes them run so hard. Lets face it, I don't really care how fast my CPU is, all I care about is my access to the internet. But if you tell me that I'll now be able to see, hear and ask questions at my shareholder's annual meeting from my computer, then I will buy a high end computer with RMBS. This is cutting edge stuff and I believe INTC really has no other choice but to make RMBS succeed or watch their margins decline. And we all know what that means.