You are not seeing the explosive nature of DVD. Wait and see, it will be like the VCD explosive days!!!
That's what we are all hoping for, and is a big reason why many of us invested in this stock, but I have a few concerns. CUBE caught the rest of the world sleeping when VCD hit in China, and for several years they had beautiful margins. After the competition woke up though, the days of growth in China were over for CUBE.
This time the competition is ready for DVD. Even out of the gate ASP for DVD decoders is low and will only get lower. I have high hopes for recordable DVD, but it is taking so long to hit the market that I'm concerned about the competition catching up in the codec arena.
I see steady, sustainable, moderate growth ahead, but I don't see explosive growth. That's why I'm starting to pound the table on an acquisition. Steady, sustainable, moderate growth companies are beautiful, but I've got a portfolio full of them. CUBE is my home run, small cap stock, and fair or not, I hold its growth expectations up to higher standards. |
