Rambus (RMBS)

[Threejack]

re: Threejack - what keeps you in the game?


Hey Skeptic,

Good question. Some days I wonder myself. Seriously, though, there are many reasons I stay fully invested in Rambus.

First and foremost, I like the business model. It is a speculative stock and the risk/reward ratio fits my long-term investing style. Although much has changed since the time I bought and built my position, the potential for long term gains is better today simply because the product and patent portfolio is larger and still growing. Moreover, you don't need to be an EE or TE to appreciate the vast size of its potential markets.

As for management, in hindsight, it has made some judgement and tactical mistakes yet the company remains profitable and continues to fight the good fight despite tremendous forces working against it. In adapting to a changing landscape and difficult circumstances outside its control, management has demonstrated the ability to strike the appropriate balance between determination and flexibility, and the Board has evolved beyond the VC start-up stage. While the stock options awarded to senior managers seem excessive to me, and I am disappointed in Mr. Tate's example of automatic monthly selling during especially trying times for his shareholders, it remains to be seen how the new accounting rules will affect future executive compensation.

Legal briefs are not a favorite reading material. And, while Rambus's underdog status may evoke my support, it is not among the reasons for keeping my hard-earned money invested in the company.

Finally, after watching His Nibs pervert the federal court rules and the FTC abuse its executive powers, I hold no illusions about obtaining justice in America either.

However, I do hold a peasant's view about The Power of the gods, and I do expect to live long enough to reap the rewards when Justice "...steps out of the darkness to reclaim her sister, Virtue...and her triumph hastens their righteous brother, Indignation...to urge his terrible twin, Fury...to rain a horrific vengeance upon her trespassers."

Masochist, you ask? Hahaha. Perhaps.

All just my opinion, of course. Do your own due diligence. Find your own resolve. Fight your own demons ; )

Threejack