Rambus too pricey?

Forbes' "Streetwalker" placed Rambus on its top five picks that look too pricey.

Streetwalker determined that Rambus was too pricey based upon its PEG. A PEG, or price-to-earnings growth ratio is calculated by dividing a stock's estimated price-to-earnings ratio for the next 12 months by its projected long-term earnings growth rate.

Streetwalker opins:

The rule of thumb says PEGs below 1.0 signal a cheap stock. These shares have PEGs at 2.0 or above, as well as price-to-sales ratios above 5.0.

Also making the list were Concur Technologies, Genetech, Somanetics and Vital Images.

Hat tip to JamesRWood of the Pinehurst Thread for the link.