When Will Be the Next Check From the Courtroom? --- RMBS

RMBS (Rambus Inc.)

RMBS designs and licenses technologies used to speed communications between microchips, especially DRAM.

Its legal targets account for almost all of the world's production of DRAM. It filed several lawsuits against the big chipmakers. In March 2005, it inked a settlement worth up to $150 million with Infineon Technologies (IFX); and in April 2006, it won a pivotal $307 million jury award in its suit against Hynix. The ongoing lawsuits will bring it some big checks sooner or later.

It is a risky one also. There are factors you should keep in mind:
1. The insiders sold their stocks from $47 to $32. It was one of the big reasons that help the stock slide recently.
2. Its CEO sounds like not very Well Street friendly.
3. The SEC is investigating its option granting.

Even though, at the current price, RMBS is a very attractive one still. Any big win from the courtroom (probably not in the near future) would double or even triple as its current price. It is a good target for mid-term investors.

It closing price, as of 6/15/06, is $23.04.

My suggestion: Buy (7.5)
Instruction: Watch the news or any abnormal activity closely; adopt some risk control strategies.

P/E Ratio --- KMG

KMG (Kerr-McGee Corp.)

KMG is an independent oil and natural gas exploration and production company.

Its current P/E ratio is 3.94 according to Yahoo! Finance. Its business is growing still.

It will execute a 2:1 split tomorrow. It closing price, as of6/14 and adjusted for the split, is $49.99.

It is a mid-term investment target.

My suggestion: Buy (7.5)

Weekly Review (6/5/06 – 6/9/06)

Will it be Stable?

The market closed out another ugly week following some bleak comments from Fed Chief Ben Bernanke on Monday. The Dow ended below the 10,900 level since February 13, and shed 3.2 percent for this week. The SP lost 2.8 percent and the Nasdaq Composite lost nearly four percent on the week.

We saw the buying powers straggled to push the market up a few times. Unfortunately they were too weak. At the end, the market kept its down trend stable.

Peoples are almost sure that the Fed will increase the interest rate at the coming meeting. The oversea markets collapsed during this week also… All the cloudy news shadowed the market. Most of the technical data point to the negative direction also.

No doubt, the market will be jitter in next week, but I hope the market will find some supports and stabilize itself.

I have to say that some stocks are over sold. You should start to look for the cheap ones. To play save, because the down trend is not over yet, you should not take big action. For long term investor, I suggest you stay away from the market for now; for short term player, I think it is a good period to get involved. Please keep an eye on the small bounces.