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Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 9:30 AM EST

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To: Andy Chen who wrote (12120)3/27/1997 4:57:00 AM
From: Andy Chen   of 50808
 
think about it. MMs can move the price of the stock. But they have no way of
preventing people from buying. Once they're out of stock availability, they need to sell
short because they are obligated to make a market.

when shorts were called in half a year ago. we have the first indication that MMs are
low on stock and high in short inventory. now that short interest reaches 10 million
mark. It is safe to say most of the short interest is composed of MM shorting because
average joe investors weren't able to short for most of the time.

There is a couple of reasons for buying C-Cube at these attractive stealing prices:

1) The giant has awaken. VCD market competition is stabilizing. C-Cube does not
intend to see any future market share erosions. They're still working on new features
and high integration to enhance customer value.

2) DVD is just around the corner and C-Cube is well positioned to take advantage of
this exploding market. C-Cube can differentiate itself from other chip suppliers because
they have the most experience in working with digital video. OEMs who doesn't spend
R&D on digital video chips may want to rely on this expertise to shorten their time to
market.

3) Set-top business is growing. C-Cube's new AViA chipsets will be available later
this year, which should provide a constant stream of revenue growth.

4) encoder business is growing. large quantities of authoring and satellite encoders will
be demanded throughout 1997 because of introduction of DVD and other services.

5) MPEG-1 single-chip encoders. This baby is creeping into desktops in American
households very secretly. It has a potential to become a standard equipment on all PCs
now that CD-burners and PD drives are getting standardized.

6) Divicom.

7) technology premium. We saw national semi acquired Mediametics earlier this year.
Semi manufacturing powerhouse thinks MPEG is a premium worth paying big bucks
for. C-Cube is the best overall MPEG company.

"I hope C-Cube stays in busines."
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