Patrice,
The holdings I cited include about 920,000 shares held by Donald Valentine of Sequoia. It's in the definitive 14A proxy on page 7. It excludes shares held by Kubota and American Century.
As far as what I would have done if I had been short CUBE (which I never have been), I would probably have covered after the last breakdown (from 25 to 18-19).
From the short perspective, the stock has declining earnings momentum, continued downward earnings revisions, a terrible chart, horrid relative strength, incompetent management, no positive news announcements, questions about the Divicom acquisition, competitive concerns from Chromatic, Zoran, and Intel. The shorts also have large paper profits which they may not want to recognize, and some may think the company has no future whatsoever and have a target price of $5. Also, it has been rumored that the great shi shi has a target price of $5. :-)
Were the CUBE longs who bought in at 60-70 in early 1996 right then? No. Were the longs who bought at 50 in late 1996 right? No. Are the shorts right at this time? Perhaps, but I don't think their existence in itself is compelling reason to believe that CUBE will continue its descent.
Regards,
Winston |
