The turmoil in the markets makes it too easy to justify selling any stock these days. Yet while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider memory technology developer Rambus
Here at The Motley Fool, we like to consider both the good and the bad sides of an investment. Below, I've highlighted three of the main bearish arguments on Rambus. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Rambus in CAPS.
1. Losses
While other companies such as SanDisk
2. Costly legal hassles
Rambus owns a list of patents, as do Qualcomm
3. Coattails can be slippery
Rambus' top five licensees accounted for about 79% of its revenue in the third quarter, while each accounted for 10% or more of its total revenue. Having a high degree of customer concentration can carry additional risk, leaving the company highly dependent on the business of its top customers. For instance, STEC's
To see details of what CAPS members are saying now about Rambus, just click on over to Motley Fool CAPS and have a look -- or add your own thoughts in the comments box below.