Rambus, Inc.
What a difference one day make!
The traders were very busy buying today. The fact is U.S. economy is growing at a nice pace while inflation is kept low. This, by the way, is the best environment for stocks. But do not be fooled to think that we are out of the woods yet. We are still in the down turn. Are many stocks on sale? Yes, but sale period can last longer. Basically, we need to be careful at this point.
One special situation stock is called Rambus (RMBS). Please refer to my blog dated 5/23: in it I said that I bought this one in my trading account. Normally I do not hold stocks for more than a few days in my trading account but this was special. Guess what. RMBS went up almost 19% today! And I think this is a beginning of something potentially big! The funny thing is that I made good money shorting this stock in April at around $45/share (again, refer to my April blogs if you care). But now, I am interested in a long position. Let me explain:
Rambus, Inc. engages in the invention and license of chip interface technologies in California. RMBS now holds more than 500 patents issued and 480 more pending patents in high speed chip interface. Rambus innovations have been incorporated into virtually all digital electronics products including personal computers, video game consoles, digital TVs and digital set-top boxes. As signaling speeds continue to rise, Rambus innovations will become increasingly critical to delivering breakthrough levels of performance.
Currently, RMBS is in a legal battle with virtually all computer chip makers (these include Samsung, Hynix, Micron Tech and many more). If RMBS wins in the court room, these chip makers have to pay up royalties starting from the year 2001. Let's just say that the amount in question is in the billions. Yes, this is not a typo: I said billions with a "B".
If you are a speculator, you may want to add this into your long term investment account. I am trading this stock (in and out frequently) but did not add this in my investment account yet. Remember, six (6) months ago, RMBS was trading at $10's. A little over a month ago, this was going for $47/share. Today it closed at $28.75. This one is a rollercoaster.
Gold: Remember I said that gold will fall to $600 area when it was trading at over $700/oz? You also know that I made some $ by shorting gold (via KRY) few weeks ago. Now, gold is coming to an area where I am getting warmed up. Soon when the time is right, I will buy a gold or a silver stock for our investment account. I am doing my research now. I am thinking BGO (gold producer) and SIL (silver producer) as a good candidate. Have some money ready...
P.S: There will be some profit taking in the market tomorrow. If you are buying stocks, be patient and wait for your price to hit. Do not chase it. We are still in the down trend ...
The traders were very busy buying today. The fact is U.S. economy is growing at a nice pace while inflation is kept low. This, by the way, is the best environment for stocks. But do not be fooled to think that we are out of the woods yet. We are still in the down turn. Are many stocks on sale? Yes, but sale period can last longer. Basically, we need to be careful at this point.
One special situation stock is called Rambus (RMBS). Please refer to my blog dated 5/23: in it I said that I bought this one in my trading account. Normally I do not hold stocks for more than a few days in my trading account but this was special. Guess what. RMBS went up almost 19% today! And I think this is a beginning of something potentially big! The funny thing is that I made good money shorting this stock in April at around $45/share (again, refer to my April blogs if you care). But now, I am interested in a long position. Let me explain:
Rambus, Inc. engages in the invention and license of chip interface technologies in California. RMBS now holds more than 500 patents issued and 480 more pending patents in high speed chip interface. Rambus innovations have been incorporated into virtually all digital electronics products including personal computers, video game consoles, digital TVs and digital set-top boxes. As signaling speeds continue to rise, Rambus innovations will become increasingly critical to delivering breakthrough levels of performance.
Currently, RMBS is in a legal battle with virtually all computer chip makers (these include Samsung, Hynix, Micron Tech and many more). If RMBS wins in the court room, these chip makers have to pay up royalties starting from the year 2001. Let's just say that the amount in question is in the billions. Yes, this is not a typo: I said billions with a "B".
If you are a speculator, you may want to add this into your long term investment account. I am trading this stock (in and out frequently) but did not add this in my investment account yet. Remember, six (6) months ago, RMBS was trading at $10's. A little over a month ago, this was going for $47/share. Today it closed at $28.75. This one is a rollercoaster.
Gold: Remember I said that gold will fall to $600 area when it was trading at over $700/oz? You also know that I made some $ by shorting gold (via KRY) few weeks ago. Now, gold is coming to an area where I am getting warmed up. Soon when the time is right, I will buy a gold or a silver stock for our investment account. I am doing my research now. I am thinking BGO (gold producer) and SIL (silver producer) as a good candidate. Have some money ready...
P.S: There will be some profit taking in the market tomorrow. If you are buying stocks, be patient and wait for your price to hit. Do not chase it. We are still in the down trend ...
posted by Jaewoo | 11:56 PM
2 Comments:
This comment has been removed by a blog administrator.
Based on your request we gave RMBS a look as well, when you get a chance check it out and have a good time in Korea.
Jym
http://hipegg.blogspot.com/2006/06/rmbs-going-bust.html
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