Andy - Re:" i believe specialty chip makers such as c-cube microsystem and
chips & technologies will do real well "
Chips & Tech seems to be working their way back into business with their concentration on notebooks. Their stock has stabilized and I believe they will benefit when the overall PC market picks up steam.
But their glory days are long gone. They are competing in niche markets. Ultimately, their stock will rise as the market expands, but I wouldn't expect to make any serious money with C & T.
C-Cube - their stock price decline has me baffled. Maybe I was too enamored of their rapid stock appreciation last year.
Anyhow, they are a premier supplier of MPEG 1 and 2 encoders and decoders, have excellent design wins in DBS gear, but, alas, they now have real competition.
However, their purcahse of Divicom seems to me a real blessing. Divicom makes high end (front end?) MPEG encoding systems for the Digital Broadcast Satellite (DBS) systems, and this may grow at a rapid rate with the expansion of DBS systems from Echostar, DirecTV, etc.
They are also working with Broadband Tech. on MPEG broadcasting/distribution over ATM and Internet backbones.
At current prices, I think there is money to be made with C-Cube.
If and when the DVD disk players arrive (I think not until Q2/97) C-cube will also benefit. But again, that's next year's business.
Paul |
