C-Cube Message Board - Msg: 104878

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Technology Stocks : C-Cube

CUBE 37.72

-0.1%

9:33 AM EST

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To: Patsy Collins who wrote (579)	5/29/1996 10:16:00 AM
From: Jim Roof	of 50808

I was simply responding to someone else who came up with 29. As far as my belief in that price as a possible downside target I am relying mostly on the tendancy for stocks, even the strongest ones, to retrace 40-60% of the gains made in a primary bull move. At times this retracement can be even more. From a chart standpoint, a weekly chart reveals a broadening formation of awesome proportions that peaked at the low 70's and broke on the downside to the low 40's in a move that was rather precipitous. If you take the standard measuring formula used to project the downside objective from such a broadening top the news is even worse. The standard charting method shows this stock finding a bottom possibly as low as the high teens. Take a look at the QDEK chart and compare to CUBE. I know the fundamentals are very different, but charts do carry strong implications. I know I am going to get grief for this statement but let me ask the critics this - is it unreasonable to expect a load of motivated sellers when a stock runs from 10 to 72 in about a year? And for the stalwarts who hang on after having seen the high 60's come and possibly go (at least for a long time) when will they decide to cash in? Their motivation will kick in when the price moves 'irrationally' despite the strenght of the company and the whole thing just doesn't make sense. C-CUBE is a great organization but again, its the hope and fears of the investors that generates the stock pricing, not the fundamentals alone. Its up to the investor to decide what is the most efficient use of his capital. Obviously with CUBE, the answer would have been to sell on the good rally back to the low 60's. I think it will be a while before CUBE gets back up there. For everyone's sake I hope I'm wrong but that's what the charts say - and Lord knows I know they can be very wrong - believe me. Jim Roof

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