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Technology Stocks : C-Cube
CUBE 36.31-0.9%Dec 8 3:59 PM EST

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To: Susan Mueller who wrote (8701)1/17/1997 7:28:00 PM
From: Craig Gordon   of 50808
 
We are definately on a roll, but the price rolled the wrong way today.

I anticipate that within a week the price will move up into the low 40s. To me the numbers look too good and the price is just too low.
This company's share price is better than buying wholesale.

When I first got on this thread I put in a post stating what I thought Cube would make and what the stock would sell for. Many people thought I was nuts. (maybe they are right) There were even some funny comments about my escape from a mental hospital - How I miss Andy.

Anyway here are my present thoughts.

Cube as a company will continue to perform excellently. In every way. Their sales will grow 10 million per quarter for the first 2 quarters of 97 and 15 million per quarter in the last two quarters of 97. I predict that they will have 495 million in sales in 1997. I estimate 97 earnings at 92 million up a little over 50% more than the 60 million reported for 1996. (my earnings estimate for 1996 was exactly
60 Million)

1998 sales should expand to 700 million and my earnings estimate is 140 million based on a 20% after tax margin. If 40 million shares are used for 1998 the eps estimate is 3.50 per share.

I believe that there are 50 dollar stocks and 100 dollar stocks. By 1999 I believe Cube will be a hundred dollar stock. For those who get in under 40 and are patient, they may have a 3 bagger in 3 years.

I forsee nothing that can or will stop Cube's great growth prospects in the many emerging markets that they are the leader in. How the stock market values the stock is anyones guess. The high volatility in this issue is scary. There are too many short term opportunists controlling the price of this issue. When the crowd changes to investors rather than speculators the given price will more accurately reflect the true value of the company.

Just as it is so terribly undervalued now, it may be so overvalued in the future. Pendulums do swing both ways. This one will have to cut through 10 million shorts - that will take time.

If you want to look at a chart of a company that is strikingly similar to Cube's look at the Microsoft chart between April of 1986 and 1990. Overlay them and it will astound you.

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