STOCK-BUYING TIPS - FOLLOW THE LITIGATION: The gurus have started to give greater emphasis to "Litigation Profits," which bolster stock prices for companies that have little market penetration, but also happen to have strong litigation positions with respect to their competitors. Rambus has been getting lots of press in this regard, and has been labeled a "top guru buy" in Forbes:

Los Altos, Calif.-based chip design firm Rambus was another guru buy involved in litigation. In May 2004, the company sued competitors Infineon Technologies, Micron Technology and Siemens, among others, for price fixing. On Monday, Rambus won a preliminary battle, with the courts setting the venue for the trial as San Francisco, where Rambus had wanted it.

The litigation-happy company is also suing competitor Hynix for patent infringement, and Rambus has already received a handful of summary judgment victories in that suit. Nevertheless, Rambus is off 23% in 2005 to $18.71. Last week, the stock was, the top guru buy by a significant margin. The M100 are not fazed by the price-to-earnings ratio of nearly 61 and price-to-book ratio of more than six. Gurus like the momentum building in the court decisions favoring Rambus.