C-Cube Message Board - Msg: 107004

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Technology Stocks : C-Cube

CUBE 35.73

+0.4%

Dec 22 3:59 PM EST

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To: Tim Michaels who wrote ()	5/30/1996 2:36:00 PM
From: Andy Chen	of 50808

cube has been oversold ever since beginning of April, and I mean there were some heavy sell-offs. Fidelity Investment unloaded more than 70% of their cube holdings (somewhere between 1M to 5M shares) in mid-April. In mid-May, cube was featured in Fidelity's worth magazine as one of the top ten stocks to avoid (with a target price of below $29). While they are doing this, institutions are buying big chunks of C-Cube in mid 40's (between 44-47). It seems like Cube has secured their earning power for fiscal 1996. There is no way the stock will go below $40, because that would make it a whopping 25 times earning (even less than Sun Microsystem). Whoever sold the stock in the low 50's or high 40's are strickly getting panicky. Please hold on to your stocks and wait for a move. Huge call-option buying volume today. Call to put ratio is almost 3-1. Real investors are buying the stock and writing spreads. The number of speculators will decrease as the stock continues on its oversold-trend (which is perceived to last around 1-2 months according to technical numbers). When enough people got shaken out, C-Cube will be a feature hot stock again. Analysts are expected to come up with revised out-look, earning estimate, and buy recommendation by the end of next week (as a result of the Divicom merger). Stay with your position and buy on dips.

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