C-Cube Message Board - Msg: 2350698

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Technology Stocks : C-Cube

CUBE 37.68

+1.7%

Jan 9 9:30 AM EST

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To: Alex Dominguez who wrote (23419)	10/3/1997 3:58:00 PM
From: BillyG	of 50808

Alex, I didn't think you would have a good answer to Innovacon's encoder problem. I think that if they develop a decoder, they will be in line behind a lot of other companies, including CUBE. And being late to market, they will have to price the decoder to meet the competition. The problem with pricing to meet competition is, how are they going to recover their R&D expenses? What are their margins going to be? In the meantime, CUBE will have recovered much of its R&D for its decoder products, and will be well-equipped for a price war, while still collecting healthy margins.

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