RMBS - Rambus Inc.
April 25, 2009 by Hot Stocks To Buy · Leave a Comment
[RMBS] Rambus Incorporated - Hot Stocks to Buy Entry Price $9.75 - $10.75
- Risk level: 6
- Profit potential: 8
- Price Target: $20 - $22
- We expect RMBS to outperform in the near and long term
We are adding Rambus Incorporated (RMBS) to our Hot Stocks to Buy list and for good reasons. On April 23, 2009 Rambus released their earnings with the following results:
- First quarter loss of $17.4 million (-.17 cents a share), Last year they had a loss of $14.4 million (-.14 cents a share). Similar quarter last year the net loss was $15.5 million.
- Revenue was down 31 percent (-$27.3 million) from same quarter last year.
As dismal as the earnings report were, it came pretty much in line with what many analysts were expecting.
We see Rambus as an enconomy busting stock that will endure most of the turmoil expected in the world economy. Being a safe harbor from the current state of the economy makes it a hot stock to buy. While their continued battle with the three Amigo’s continue and verdict remains uncertain, we do see some positives for Rambus this coming year.
- The major positive is Microsoft’s expected release of their new Windows 7 operating system. With the release of any new operating system from Microsoft, there is always an increase in new computer hardware purchase and with every new computer, RAM is required.
- Another positive from the Windows 7 release is the operating system is a 64 bit operating system. 64 bit operating systems can make use of more ram than the current 4gb constrained by 32 bit systems. This will lead to increased RAM sales.
- The increased of online games and higher powered games will also help Rambus in their RAM sales.
We see a very bright future for Rambus this coming year and expect to see the stock double by year’s end. Our entry price for this stock is between $9.75 - $10.75. Our 12 month target price is $22.
As always we encourage you to do your own diligent research prior to making any purchase or sale of a stock. Please read our disclaimers under “Terms” for more details.
