Wednesday, September 13, 2006

The Motley Fool & Rambus Inc.

Dave Mock writing for The Motley Fool arrived in my mail. He writes in part: (emphasis added)
I've found that there are a number of other popular investment strategies that don't seem like the answer for investors. These include:

Lawsuit judgments can mean hundreds of millions of dollars these days. No wonder, then, that investors put money in companies embroiled in legal tiffs hoping for a big payday. Rambus (Inc.) (Nasdaq: RMBS), for instance, has had mixed success in the courtroom, and investors have been on a wild ride because of it. Betting on the outcome of lawsuits can be lucrative, but it's a different game than investing in undervalued streams of cash flows

Rather than a litany of expectations that can be cited as motivation for investment, I've decided to try a different religion, one that puts faith in the fundamental driver for everything -- a company's management team. After all, the capability of a company's leadership team is what is actually the (sic - Freudian?) behind positive prospects and even negative expectations that the market prices into stocks everyday. So rather than gauging what are essentially effects of company operations, I aim to better assess the fundamental cause of success or failure: The executive team and board of directors.
People have got to know whether or not their President is a crook. Well, I'm not a crook. I've earned everything I've got . . . and my friends at Rambus Inc. are well, my friends.

Thanks Dick, I am feeling better about "the executive team and board of directors" that takes months and months to investigate backdated options, calculate and restate earnings . . I am feeling good about your "friends".

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