C-Cube Message Board - Msg: 11339720

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Technology Stocks : C-Cube

CUBE 36.91

+1.7%

Nov 25 3:59 PM EST

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To: Maya who wrote (45210)	9/23/1999 12:29:00 PM
From: Black-Scholes	Read Replies (2) of 50808

Let's review how irrational the market is behaving - shall we? About three weeks ago (CUBE: then ~$34), Divicom announced their new revolutionary encoder. One week later, CUBE announced a design win with JVC. DiViT immediately inferred that SONY and PHILLIPS and EVERY CE manufacturer must be buying CUBE's codec. Then the market came to the correct conclusion that CUBE is THE ONLY COMPANY WITH A CODEC THAT WORKS!!!! From $34 we went to $41. A fair increase in firm value considering the new revenue streams. UST raised their target price to $53 and H.C. Wainwright (the only brokerage house that has explicitly expressed a real understanding of the value of Divicom) raised their target to $73. Now, because of a one to two week shut-down of production at ONE (not the only one) of CUBE's foundries, the market "taketh away" the firm value increase from NEW long-term cash-flows? IRRATIONAL!!! Please say something CUBE management.

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