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Market Savvy | Savvy Confidential / A Briefing for
Investors

Rambus Rises 11% on News of Stock Split

March 11, 2000|Bloomberg News, Times Staff

Investors are practically doing cartwheels over companies doing stock splits.

Rambus Inc. (RMBS), which develops technology to make computer chips work faster, said Friday that it will split its shares 4-for-1, and the news sent its stock up 11% to a record. The Mountain View, Calif., company's shares surged $41.55 to $421.

The split, expected to occur May 24 for shareholders of record March 30, will be the company's first since it sold shares to the public in 1997 at $12 apiece. Rambus shares have more than quadrupled in the last month as investors bet that the newest chips from Intel Corp. will use Rambus features and personal computer makers unveiled models with its speedy chips.

"The fundamentals are as strong as ever for Rambus--even with the rise in the stock," said Seth Dickson, a Warburg Dillon Read analyst, who rates Rambus "strong buy."

Meanwhile, Quest Software Inc. (QSFT) of Irvine soared $51.75 to a record $195 after it announced a 2-for-1 stock split, effective March 31 for holders of record March 20.

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