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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: E. Graphs who wrote (18584)	5/27/1999 1:36:00 PM
From: J_W	Respond to of 25814

* OTOT * E, RMBS has been a rather difficult stock to chart. Just about the time you think you have it figured out, it will gap up/down on just about any news/rumors. It is king of the gappers. IMO the gap at 67, if it does not get filled in the next few weeks, will never get filled. But only if the launch of INTC's Camino chipset remains on schedule. There has been a lot of FUD going on with this stock. The launch of the Camino chipset from INTC due out this Sept is at the root of the problem. A previous delay by INTC dragged RMBS down from 110 earlier this year. The closer we get to Sept, with no further delays from INTC, the higher this one will go. The current PE of 255, while very high, reflects the potential future revenue growth. But this growth will not start to occur until fiscal 2000. Rambus's solution to the memory access speed problem is a little difficult to understand, hence the ability of the shorts to cause uncertainty on RMBS. You will almost never see coverage on CNBC because they have no idea how to explain it or what the impact on the computer industry will be. I think it will take another year before RMBS is well know by the general public. I have made a point of this by asking people in my profession (programming) about RMBS. Very few know of RMBS. Even fewer know what RMBS does. IMO this will become the next standard for PC memory superceeding SDRAM. There are no viable alternatives at this time and RMBS holds the patents. But it will phase in over the next two years. Rambus memory will also be used in Sony's PS2. Also there is resentment from DRAM chipmakers who do not like the idea of having to pay royalties to RMBS. Some would rather extend the current PC100 SDRAM to PC133. But IMO that will only provide a short term solution to the memory speed problem as CPU speeds continue to increase. The only proven solution is to use the RMBS method. INTL has designated RMBS for use with the next generation of processors. They have already invested over a billion dollars (in the chipmakers) to make sure this not only happens, but to make sure there is sufficent supply. In addition there is a large short interest of about 6M shares or about 5 days average volume. So this one is a coiled spring on any good news, but a sinking ship on any delays. I suggest you review posts on the RMBS thread. They have a number of good, well informed posters there on par with those on the LSI thread. For technical aspects of RMBS check out the posts by Tenchusatsu. He is an engineer at Intel. Member 4869670 Jim