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

To: Allen champ who wrote (20581)	5/21/1999 7:04:00 AM
From: unclewest	Read Replies (1) \| Respond to of 93625

allen, another way to look at the share numbers is... outstanding....23.3m insiders........5.1m institutions...12.0m stuart..........1.2m if we assume for a moment that these are all in strong hands.there are only 5 million shares to play with. as of april 8 there were just over 5 million shares short. hold this thought for a moment. over the past few weeks the news has been powerful and positive. the rdram rollout is nearly upon us. sony dumping sldram and ddr last month, and coupling with toshiba to produce rdram was like a flash of light that won't go away. the 70 +or- companies involved in converting the memory industry to rdram are all issuing positive upbeat messages. six months ago the big problem was heat. that has all been solved. in fact as i understand it, rdram now actually uses less current than sdram. we now know that rdram is scheduled for laptops in 2000. matsushita ceo has stated they are designing an entire range of consumer products to use rdram and expect other companies are also. in the industry the word is out. intel has remained steadfast in their support of rambus. even more important for us, intel refuses to support any interim slight improvements (ddr). intel is determined to take the world from sdram 100 to rdram 800 and beyond. intel knows how to do it; they did it before(only took 2 years to switch to sdram). intel still produces over 80% of the world's chipsets, they own the game ball. if you want to play memory you have to play with intel, with intel's ball, and by intel's rules. in the investment world rmbs is only followed by 5 analysts. this will imo change very soon. rmbs is a difficult company to understand. many folks still think it is a chipmaker. chipmaking is barely profitable right now so they assume rmbs must be hurting. in fact rambus is more like microsoft only better. rambus has a product that will go into 95+% of pc's in a few years. rambus also will be in hdtv, dvd, scanners, copiers, game sets, and, and, and. rambus collects license fees and hefty royalties from every use. rambus net profit is projected to exceed 40%. some very astute investors are jumping all over this stock. the pe means nothing right now. i have seen projections that take rambus from $.28 this year to $6-$8+ in two years and on up to $23 and higher in 3-4 years. this has quick 10-20 bagger written all over it. this is high explosive growth and does and will command a very high pe. rambus is all over the si and yahoo boards. i did not mean to get so wordy. my point is this...demand for rmbs shares is accelerating, this is driving the price up, this in turn is putting pressure on the shorts to cover, this increases demand for shares, this drives the price up. the numbers indicate that short covering alone could take up the entire effective float, this drives the price up, we are all buying more, this drives the price up, earnings models are incredible, this increases demand, this drives the price up. oh ya nearly forgot, you pointed out that institutions have increased their position by some 4 million shares in the past 90 days, this increases demand, this drives the price up. i post regularly that when the naz is down, rmbs is up, sitation normal. i assume everyone knows why this happens. it is a very strong indicator of institutional buying. they like to buy on down days. this anomaly makes rmbs very difficult to trade. better to buy and hold imo. look at how many rmbs traders are missing this run. unclewest hi jeff