Rambus (RMBS)

[eastunder]

Rambus.. highlighted as Zacks Bull.. of the Day

Thursday, 17 Apr 2014 | 9:30 AM ET



CHICAGO, April 17, 2014 /PRNewswire/ -- Zacks Equity Research highlights Rambus (Nasdaq:RMBS-Free Report) as the Bull of the Day and American Capital (Nasdaq:ACAS-Free Report) as the Bear of the Day.


http://www.cnbc.com/id/101592375


Bull of the Day:

"There's no mentum like momentum." I know mentum isn't a word but you catch my drift. When a stock is consistently hitting new high after new high there is nothing like it. The market forces of accumulation continually push a stock to levels it hasn't seen before and shareholders are handsomely rewarded. Now find a stock that has positive momentum and a compelling earnings story during a tumultuous stock market and you have today's Bull of the Day.

Rambus (Nasdaq:RMBS-Free Report) is a semiconductor company that has been around for a while but has fallen off most people's radars. RMBS was a darling back in the days of the dot com bubble, trading as high as $135 before the bubble burst. Recently is has wallowed in the single digits until the tide turned in 2013. The semiconductor company is best known for making royalties from DRAM licensing. Good news for RMBS is the potential for new royalty streams from Qualcomm and Mediatek could range from $50 to $95 million per year. This would definitely be a big shot in the arm down the road.

Rambus is a Zacks Rank #1(Strong Buy) and owes that rating to its recent earnings surprises. Over the last four quarters RMBS has beat by an average of 14 per share each time. Last quarter was the most dramatic with RMBS earning 12 cents versus the consensus estimate for a 1 cent loss. The next earnings report is just around the corner, slated for April 21st. Recently, earnings estimates have been revised to the upside for the current year and next year. Current year consensus moved from a 5 cent loss to a 20 cent gain over the last 90 days. Current quarter estimates call for a 1 cent profit per share.