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Technology Stocks : C-Cube
CUBE 35.73+0.4%Dec 22 3:59 PM EST

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To: R. Windsor who wrote (902)6/12/1996 4:49:00 PM
From: Andy Riedel   of 50808
 
To ALL:

Is there some support somewhere? This stock is beginning to remind me of CSCO in early '95 when they consistently posted tremendous earnings growth only to have their price cut in half.

My take on this type of situation is a new influx of money manager types hoping for a rise on the "new" stock for the current quarter. If there is any selling or uncertainty, they sell off in droves. Eventually, the stock begins to continue to show its true worth by consistently blowing the doors off earnings estimates and becomes a stalwart for these fund portfolio managers who look great when they have all their clients buy back in.

Cube is now trading at a forward P/E of about 22. It looks like a ridiculous bargain to me and I will accumulate more at these levels (as I did at 46 and 43). This stock could go to the 20's but I'm sure we'll see it back up to the 80's by this time next year.

Obviously long,

Andy
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