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

To: Zeev Hed who wrote (20650)	5/23/1999 1:46:00 AM
From: pompsander	Read Replies (1) \| Respond to of 93625

Since Don isn't warning all of us, I will... we're all advising the Company what to do with millions of dollars of revenue which is not yet earned. But, since this is a wonderful idea to contemplate, I'll join in. I think they should: 1. Establish a share buyback program which will periodically enter the market and repurchase part of the (by then) 100 million shares available. This rewards existing shareholders and pays an indirect dividend, tax advantaged for such holders. 2. Devote increasing sums to research and development. Rambus may be a one trick pony, but that trick can be performed in new and interesting ways for years to come if the Company does not lose its edge. To paraphrase Andy Grove, a little paranoia will be essential as new and bizarre FUD is spread by firms which will NEVER be happy paying Rambus royalties. Rambus must stay out in front, using its newly found leadership to shape future directions of its markets, just as Intel and Microsoft do. It is amazing to realize they will be in a position to do this in a few short years. 3. I know I am criticized (nicely) on the thread for this point, but I want Rambus to define itself to the public in a manner which creates an expectation by that Public that Rambus will be the technology which must, under any circumstances, be in the products they buy. If Uncle's vision of dozens of Rambus enhanced products comes to pass, then the fact that "Rambus is Inside" becomes a deciding point in buyers acquiring the product. A poor analogy is when Dolby was the essential technology in audio systems. But the Dolby name sold product, which created more demand for Dolby. 4. Build a war chest to partner with or acquire new firms with compliant technologies. Cisco has made this a fundamental part of its corporate discipline and it has paid off big. If Rambus management finds such a firm it has to have sufficient assets (probably in stock) to act. 5. Under no circumstances purchase a firm which produces a product or technology which is not a direct extension of Rambus current focus. The temptation will be great to spend some of the money to buy what the banks used to call "bricks and morter". Something to put on the cover of the annual report. This would be a huge mistake.