John, I,like you, am in love with the Digital Video Market. I have been long, CUBE since April, 1995.My problem with CUBE is management. They spend a ton of money on R&D, and it seems to payoff well. They are always first to the market with the latest chip. But then they donot have a clue on how to sell it. They cannot turn product into profit. If they had known what they were doing, ESST and other companies would have never been able to get into the market and survived. I am afraid that when DVD becomes a viable market, The same scene will be replayed, Cube will be there with the best chip and then set there and watch someone else capture the sales.In my opinion, if they don't change top management now, we will ride this investment into the sunset.
Maybe the best way out for them, would be to acquire, be acquired by, or merge with ESST or someone like them. To my very limited knowledge of chips and chip design, it appears that ESST took an inferior product and creamed CUBE with it. ESST seems to know marketing, damn well.
I am not short anything, I donot own any ESST stock, and don't anticipate owning any. And I have no animosity to anyone that does.
Jim Ray
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