Folks we have to decide on RMBS

S

stonedinvestor

I've never been a big fan of this stock. Last two days have seen catalysts back to back a settlement of sorts with NADAQ and a ruling on reimbursement? It's complicated I'm still doing the research. but the take is that these two events may have put a floor on this stock and if you take a look a a 1 year on RMBS you will see that it would only take one or two more good days for this to look REALLY good and attract buying. There was a small house upgrade today and Fred Alger who as I remember is a mutual fund guy he's telling people $90. Now that last bit of gossip I will be back to you later today to make sure I heard right-- I was drinking at lunch with some fellow investors --

We must decide where we stand. I'm leaning towards a quick $32 target.... ~stoney
 
I've decided I'm in. 500 shares.

>(RMBS) Amtech recommends that tech investors continue building positions in RMBS this morning. Firm believes that Monday's FTC decision has set a floor for RMBS royalty rates, and that RMBS will work hard to settle with the industry at terms still very financially favorable to the co, and that while not ideal for the industry, are at least more palatable than the current proposal. Firm believes that the next catalyst is likely to be a negotiated settlement. Based on their "floor" valuation of $21, firm thinks the current share price offers investors an inexpensive call option with substantial upside potential. Reits Buy and $32 tgt.
 
1st bit of good news.
>

Ruling Relief Sparks Rambus Shares

It could have been worse -- a lot worse.
That sense of relief sent Rambus (RMBS - Cramer's Take - Stockpickr) shares soaring Monday, as investors deemed an anxiously awaited regulatory ruling to be a slap on the wrist.

In a 30-page opinion, the Federal Trade Commission capped royalty rates that Rambus can collect from companies that use certain types of computer memory.

The commission set a maximum rate of 0.5% for DDR SDRAM and 0.25% for SDRAM.

But the commission said nothing about DDR2, the current flavor of memory used in the majority of PCs, nor did they rule on DDR3, which is expected to be the next major memory standard.

"It puts a cap on a product that has largely already transitioned out of the market," says Pacific American Securities analyst Michael Cohen, who personally owns shares of Rambus. "So, from a money perspective, it really doesn't mean that much."
 
2nd bit of good news.
>Rambus Receives Stay From NASDAQ for Continued Listing
- BusinessWire

LOS ALTOS, Calif., Feb 07, 2007 (BUSINESS WIRE) -- Rambus Inc. today announced that, on February 6, 2007, The Nasdaq Stock Market, Inc. notified the Company that its common stock will continue to be listed on The NASDAQ Global Select Market pending a stay and a review by the NASDAQ Listing and Hearing Review Council (the "Listing Council") of an earlier decision of the NASDAQ Listing Qualifications Panel (the "Panel"), dated January 19, 2007.

Options of course but does the NASDAQ really want to lose a big name like RMBS. Conspiracy thinking I know- but I think accurate.
 
Folks I'm feeling hunchy here which is never good.
I just sent the idea up channel to the hedge fund to get their opinion. I rarely do this and only when I 'm considering going BIG. Stay tuned.
 
The problem with hedge funds is that they are so damn focused on their own ideas you have to practically hit them with a brick sometimes. And then they just turn around and say do you want to own it? My mom could have asked me that! And did! I sent all the research I posted here to them, I'll hear back and the end of the decade and the stock will be $90 then.
 
I'm staying away from this one. If anything, the recent run-up looks like it may be a shorting opportunity.

Trailing P.E. over 78, Forward P.E. 56+ and a PEG over 6. The recent news is good, but stock options investigations (I know, who isn't) showed a "significant number" of problems and they are re-stating past earnings.

Just too many other stock out there.
 
Topdown what U think I flaked out of this one and I really like the way it traded late in the day today.
I'm feeling like I f*ed up here and we should be in
RMBS.

Anyone? Any thoughts....
 
Hell Stoney - You didn't miss anything. It's cheaper now than it was on your original post. Quick glance at the chart tells me overall the trend still looks down. But... today it did have a higher low and the close was strong - price and volume up in the last hour. The RSI and MACD still show overbought. Upside resistance at $23.50, closest support looks like to be in the teens. So, we have $1 upside / $3 down. If the market turns week (which I am expecting for tomorrow anyway), I wouldn't want to be in this one that's for sure.

But who the F knows - you have made all the right calls lately - I'd follow you just because you seem to be on a streak!.
 
This one has trap written all over it you're right. I felt uneasy about it already and when it started to come in I bailed but so help me it looks like it's revving for sprint to $26.

mixed feelings...
 
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