Great Trades

Great stock trades based on fundamentals and technical analysis.

Thursday, March 23, 2006


Rambus (RMBS) Sell Opportunity Again

In January, we highlighted a sell opportunity on Rambus (RMBS) shares near $35 and later removed coverage as it dropped, saying we would revisit the RMBS sell call if it rallies again.

Today, after selling off to the 26's in February, RMBS is approaching the $38 target cited in the WR Hambrecht upgrade in January that assumed RMBS would win all its court battles and receive payment this year. This rally has been spurred on by several press releases related to RMBS's ongoing business as well as speculation on the results of the ongoing Hynix trial. The ongoing business news has been insignificant compared to the huge premium priced into the stock, which assumes RMBS will win all their cases.

We believe that Rambus again represents a good sell opportunity. If Rambus wins the Hynix case as expected, we expect a sell the news reaction, as shares are valued well beyond the underlying fundamentals. If they lose the case, we expect a collapse in the stock price. The Hynix case should be decided within the next few weeks.

Comments: Post a Comment

<< Home


December 2005   January 2006   February 2006   March 2006   April 2006   May 2006   July 2006   August 2006   October 2006   November 2006   December 2006   January 2007   February 2007   March 2007   April 2007   May 2007   June 2007   August 2007   October 2007   November 2007   May 2008   September 2008   October 2008   January 2009   February 2009   March 2009   April 2009   May 2009   June 2009   July 2009   August 2009   September 2009   October 2009   November 2009   December 2009   March 2010   May 2010   June 2010  

Great Trades Home    Email GreatTrades

Great Investments Blog     Great Investment Articles Blog

Disclaimer: Great Trades may have a position in all or some of the stocks discussed in this blog, but is not paid by any company to promote their stock. Great Trades contains opinions, none of which constitute a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. Great Trades does not provide personalized investment advice.

Seeking Alpha Certified

Enter your email address to subscribe:

Delivered by FeedBurner

This page is powered by Blogger. Isn't yours?