Thursday, January 21, 2010

RMBS Valuation

Okay, I took a shot at valuing RMBS one year from now. I start with a premise from Ford Equity Research that RMBS trades in a band from 6.27 times trailing 12 month sales to 25.12 times trailing 12 month sales. I took the midpoint of that band, 15.7, to use as my multiple. So, based on my "back of the napkin" calculations, RMBS should be a $32 to $64 stock JUST BASED ON THE SAMSUNG DEAL ALONE. This does not count a potential settlement between Hynix and/or Micron. I think RMBS is a serious deal below $25.


  1. Rediculous! The stock has a net asset value of about $6 per share after the Samsung deal.

    If anyone wants to pay a licensing company 10 times it actual value they need to seek help.

  2. Sorry you are short. The action today clearly showed the smart money snapping up shares on the trial delay news. Simply put, RMBS should've tanked today on the trial dealy news, but each downdraft was bought HARD!


About Me/Disclaimer/Philosophy

Trading since 1996, it NEVER leaves my mind which is a curse and a blessing. I trade stocks, options, and futures.