C-Cube Message Board - Msg: 1883465

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Technology Stocks : C-Cube

CUBE 35.58

-2.0%

Dec 9 3:59 PM EST

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To: Mark K. who wrote (20085)	8/1/1997 8:14:00 AM
From: Rarebird	of 50808

Mark, although I am long Cube and certainly hope you are right, I do not think that Cube warrants ( based on their earnings) a blind buy and hold strategy. Great potential does not necessarily translate into great earnings. Even if Cube were to earn some day $3 in earnings for the year, I think the market would accord them a multiple similar to the disk drive makers: 10- 15 times forward earnings. Unless you got into Cube on the ground floor, only the traders and short term investors have made good money on Cube ( Shorts and Longs ). Some people on this thread naively think that Cube can trade at 25-30 times earnings. That kind of multiple is only accorded companies that have CONSISTENT EARNINGS and are growing rapidly. Cube has a long long way to go before they reach that status. As for the traders, look at the range Cube travelled yesterday: 23.125-24.625. My point is this: Cube is a good value play at these levels. The growth play has already been played out, played out as a disaster for the longs. When I say value, I mean it; for your talking to an ex-short seller of Cube who is now substantially long the stock!

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