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Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 3:59 PM EST

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To: PrettyBoy who wrote (15744)5/20/1997 3:33:00 PM
From: Humblefrank   of 50808
 
Anybody can go back and look at my posts on the MF board. I always thought
VideoCD was crap. I never trusted the Chinese market. Why should I. Fact is
they rip off anybody they do business with. I'm happy to see Cube completely
write off VideoCD. If you look at the numbers that's exactly what they've done.
There's a reason shorts are covering now though. With this write off Cube
is at the bottom. Their other markets are doing fine and have great
potential.

Some of you have called Alex a liar, but that's speculative. You don't
know when he knew things. People on the inside do, so watch how they
handle it. Alex B. doesn't really control the company, Don V. does with
Sequoia. If Don V. loses faith in Alex than he'll probably sell the
company. Their encoder business is still very important and there is
great potential there. If Cube is preparing a codec this would be a
very valuable chip. All the people whom have recommended Cube lately
didn't do it for VideoCD. We all knew that would be a problem. Anybody with
a brain knew VideoCD was a loser, but we hoped it would hold up longer.

If Don V. and other insiders keep faith In Alex B. than chances are he didn't do anything
wrong. The company learned from this and they'll move on. Still looking for
DVD, but the decoder market there doesn't look so good either. Almost a
replay of VideoCD, which is not good for a company with high R &D.
Remember, that Cube has been pouring money into R & D and they must be
doing it for a reason. Don V. would not let them waste more of his
money if the company was going out of business. I sold this morning, but
I'm looking to get back in although cautiously.
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