2-Star Stocks Poised to Plunge: Rambus?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, technology licensing company Rambus (NAS: RMBS) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Rambus' business and see what CAPS investors are saying about the stock right now.
Rambusfacts
Headquarters (founded) | Sunnyvale, Calif. (1990) |
Market Cap | $737.7 million |
Industry | Semiconductors |
Trailing-12-Month Revenue | $312.4 million |
Management | CEO Harold Hughes, Jr. (since 2005) |
Return on Equity (average, past 3 years) | 0.7% |
Cash/Debt | $289.5 million / $133.5 million |
Competitors | Elpida Memory |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 16% of the 522 members who have rated Rambus believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those bears, fellow Fool Anders Bylund (TMFZahrim), succinctly summed up the underperform case:
Rambus settles a few claims, loses the rest, and goes home somewhat richer but none the nobler. The prospects for another successful lawsuit are fading fast, which is why I'm starting a bearish CAPScall on Rambus even at these five-year lows (if you ignore occasional even-deeper plunges along the way). It's still a long way to the bottom.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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