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

To: unclewest who wrote (19308)	4/26/1999 12:06:00 PM
From: Al Serrao	Respond to of 93625

Cash flow! I know this sounds old fashion with internet IPO's coming public every day that have barely been in business three years and still won't make a profit for who knows how many years from now. But since my backround is banking, I always like to look at financial statements, particularly small companies financial statements. In most cases small companies even when they have the latest technology often fail because they are under capitalized. They usually can last a year or two until they burn off the cash from the IPO. Eventually they must come back to the well and issue more shares and dilute the existing shareholders or sell out. Where does RMBS stand? Well when the CEO comes out and says earnings are expected to be flat for the reminder of the year, you can understand why everyone runs for cover. But this needs to looked at more closely. First of all RMBS is making money not loosing money. A very important consideration for a company this size. When I compare the balance sheet( information taken from RMBSs' quarterly statements from their web site) from Sept 98, to Mar 99 cash and cash equivalents actually increased from approximately 78 million to 83 million. Liabilities have declined from approximately 67 million to 66 million and shareholders equity has increased from 47 million to 50 million. Every small company should be managed as well as this. As long as RMBS keeps from loosing large sums over the next two quarters ( and I see no reason to believe management has mislead us since they just don't hype their stock ), this company looks to be in fine financial shape to weather the interim period before ramp up and even beyond. JMO. Best to all.