I dont make my living as a writer so you may not recognize the name. But I do enjoy the main thread, just not alot of time to write. I do follow many stocks but I really like the future prospects of cube. Unfortunatly the market has not paid much attention to the future and today only recognize the present. Why do I mention this? Because cube takes the same approach. They are not quick to hype up there stock(value).
So after numerous conversations with management and a tremendous amount of research, I find myself with once again "patience". After the NAB convention the stock seemed to have limitless potential. There was a tremendous amount of activity at both the cube and divicom booth. Companies that used cubes products boasted about the cube chips performance. The divicom boooth was filled with the likes of Echostar, time--warner, turner, and numerous other local and national carriers. The sunw and adaptec deal were raved about, but I come back to decent earnings, a humbled Alex B saying they were "blindsided"by the competition(not even mentioning them by name) and the promises of a bright future. All the while the company keeps a tight lip to the public , in particular the street.
We have not lost faith, but the street has. You see even cube admits that dvd will not gear up until 4thqtr 97, but they expect late qtrs 98 to be the most profitable. Two years ago it was late 95,one year ago late 96, now late 97, but really 98. That is a lot of patience for a new technology (DVD), a giant field of competition in broadcast, and a eroding marketplace(Video cd), all for a only recent succcessful chip company. Cube is still perceived a risk. So we must think long-term.
BTW cube is my favorite stock and I do claim to have lots of research, but between you and me its nothing compared to the infosaturation so generously offered to us by Mr Nadalin, Mr Chen, and Mr Reiman.BTWII: creative is not using cubes chips in dvd-only diamond and quadrant-other then samsung and aiwa-but thats it and nothing released until shipments are inititiared (cubes policy)
Cube long but short term nervous- |
