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Technology Stocks : C-Cube

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To: Andy Chen who wrote (939)6/12/1996 10:24:00 PM
From: cal buzzell   of 50808
 
Regarding your current recommendation.
I understand how you can say sell CUBE due to
uncertainty. I do not understand how you can recommend
shorting CUBE.
With a large short interest - the stock could explode to the
upside based on fundamental news due to short covering.
I guess if it's risky to be long - it's risky to be short.
News that could be positive:
** CUBE licensed the microSPARC processor from SUN for a reason.
They have yet to announce a product. I have talked to CUBE
engineers and all they could say is that it may be incorporated
into a new encoder/decoder and that it may be a whole new
product with broad application. (I'm hoping a multimedia
microprocessor).
I have not seen any discussion of possible new chips from CUBE
on this thread but would sure welcome it.
Big Block:
Regarding the 200,000 share block. My understanding is that
it was handeled by Alex Brown and that the sale was complete.
DiviCom Conference:
If you have any specifics on your comments I would appreciate
them. My understanding is that Alex B was in London at the
Robertson Stevens conference and his comments are what eventually
caused them to lower next quarters earning by 2 cents. This does
not sound too serious.
My impression is that current and potential weakness is a real
buying opportunity.
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