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Technology Stocks : C-Cube
CUBE 35.52+0.4%Jan 5 3:59 PM EST

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To: Craig Gordon who wrote (16093)5/23/1997 12:19:00 AM
From: DiViT   of 50808
 
"it is a big embarrasing mistake on the part of Cube"
Agreed.

"stuffing of the distribution channel"
I don't believe that they stuffed the distribution channel. The company is too conservative for that. They don't announce a chip 6 months in advance (as Zoran has done). Look at the press releases. Chip announcements come only when the chip is ready and customers are lined up.

I've seen cases where companies who are competing for a supply of chips that are in high demand, over order so they can ensure that they get allocated what they need. Haven't we seen this over and over in dram for years.

However, I would think the company would have protection in place for order cancellations and such. Perhaps that is the mistake they made.

In any advent, I bet they'll be even more conservative now.

Long and hangin' on.
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