I'm new to this board and long Cube. I found some info in the paper today and would like your opinion:
Nasdaq posts 6.5% increase in uncovered short sales.
New York Times 3/26/97 article includes short sales table:
25 Largest Positions includes:
Name 2/14/97 // 3/14/97 // Change
C-Cube 8,862,959 // 9,909,300 // 1,046,341
Cube is 16th on the list. Also includes Worldcom, Staples, Tele
Communications, Boston Chicken, Apple, Cisco, 3Com, Novell, Microsoft, Intel,
Netscape, Oracle, Sun, Ericsson & Dell. AOL is not on the list.
Comment: The shorts are betting on some negative earnings surprise. From 10-K, Cube has reserved
2,809,446 shares of common stock for the conversion of subordinated notes. If all were shorted
to hedge their position, 7,099,854 shares are straight short sales.
What's your take? How about a positive earnings surprise and some
short covering.
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