They See Me Trollin'...(RMBS)

Rambus

is a company "engaged in designing, developing and licensing chip interface technologies and architectures," according to Google Finance. There's only one problem with that description. The company's namesake RAM standard, RDRAM, fell out of favor in the early 2000's. It was replaced by superior SDRAM technology. The company's response to SDRAM, XDR DRAM, received a cool reception. Only the Playstation 3 uses it. Almost all computers now use SDRAM. Rambus' newer XDR2 DRAM was a colossal failure, with almost no adoption by the industry. The company's business model is ostensibly based on suing other companies for patent infringement. 96% of 2009 revenue came from "licensing fees." Rambus is currently embroiled in a long-running lawsuit against RAM makers Hynix and Micron, companies that actually contribute to society. So what we have left is a $2 billion patent troll. Diehard Rambus investors, called Ramboids, continuously delude themselves about this company's prospects. The stock jumps at every little bit of "good" news. See July 27th's jump after the ITC ruled in favor of Rambus in its case against NVidia

. Rambus has been ranging between $100-$200 million in annual revenue and loses money every year. Clearly this company is not worth $2 billion in market cap. Disclosure: I am currently short RMBS.