Why can't Cube rally?
There is a paucity of buyers. Why should anyone buy the falling Ice Cube? Pricing pressures have begun and it will intensify! It's just a matter of time before the Ice Cube pre-announces its earnings shortfall too. There will be nowhere for Cube to hide as deflation takes its mighty bearish hold on Southeast Asia. China will succumb also to deflations sway in 98. How will the Ice Cube survive with a NEGATIVE CASH FLOW OF $1.93? The source again comes from S@P's Earnings Guide, which is more CREDIBLE than all of the sacrificial little long Cubie lambs put together on this thread. Cube has a 50% exposure to Southeast Asia. 3Com blamed its earnings shortfall on a 15% exposure to the region. Is anyone really NAIVE enough to think that China will escape deflation and currency devaluations in 98? Well, the Market doesn't think so and that's why their SELLING THE ICE CUBE! Only the Cash Cows and franchises are gonna survive this crisis; and Cube is not one of them!
Short sellers control this stock and don't forget it! Cube rallies when the shorts take profits, that is cover. You LONGS can't make me cover, because you have no power, no vitality, no energy, no strength, and no earnings growth to speak of. This ICE CUBE is going down, down hard in the next 6 months! We broke below 20 today, a key level. We touched Cubes next level of support at $18.625. That will be easier to break than $20. Then we retest the lows at $16.75. There will be countertrend rallies in between, a chance to get out if your long, and a chance to add to short positions. I told you before: We shortsellers are relentless and quite unified. There is no BLOOD on this ICE CUBE yet! But it's coming. Just you wait and see. |
