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Technology Stocks : C-Cube
CUBE 35.36-1.0%Dec 23 3:59 PM EST

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To: Michael Anthony who wrote (10527)2/25/1997 4:52:00 PM
From: Carl T Hammerdorfer   of 50808
 
Pardon this observation, but I am amazed at how surprised so many people seem to be that this is a volatile stock. I think it was Templeton's dictum that the fundamental property of markets is that they always overreact. Cube seems to over-overreact, which will not bite you too bad as long as you don't expose yourself to the dreaded margin call.

If you think you can read the writing on the wall and understand that cube is a very strong player in a burgeoning new technology, then hand on, or better yet, buy more at 29. The numbers that we were all crowing about as cube rebounded from 25 have not changed. EPS expectations will doubtless be met and probably be exceeded. If you're day trading this stock, expect to be burned from time to time. If you're holding it for a couple of years, take advantage of these dips and buy a little more.

RS has a target of 50 by 18 months and they are on the conservative side for analysts covering cube. I think 60's more likely, but even 50 is not a bad achievement when you consider the new vistas that will open up in this area over the next year and a half.

Remember the chinese proverb: there is great chaos in the heavens and on earth....and the situation is excellent.

carl
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