C-Cube Message Board - Msg: 5751124

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Technology Stocks : C-Cube

CUBE 36.52

+0.3%

Dec 12 9:30 AM EST

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To: Stoctrash who wrote (35955)	9/15/1998 9:34:00 AM
From: Rarebird	Read Replies (1) of 50808

Why Single Digits? Cube is caught up here in the classic liquidity trap that takes place in a Bear Market amongst small caps. Volume is anemic. There is no buying pressure to push the stock higher. It's similar to what happens in a deflationary economy. People don't buy even though prices are cheap because they think prices will become even cheaper. I know many people, including a few who post on this thread ( once in a while ) who will not buy Cube at its present price ( even though they bought in the past at a higher price ) because they are raising cash and they feel they can buy Cube at lower prices down the road. So, Cube is cheap but not cheap enough to really attract buyers. Downturns and Bear Markets feed on themselves just like Bull Markets do. The longer the shareprice stagnates at these low levels and trends downward, investors will get disgusted and periodically sell off the shares for the safety and security of Treasuries and Money Market funds. Moreover, the tax loss selling season is approaching. Although Cube is not down dramatically this year as it was last year, Cube is still a candidate for some selling as 98 winds down. C-Cube is not a Blue Chip. The stock represents a lot of risk to the average investor given its big market in China, the threat of currency devaluation, and the risk that the deflationary global economy becomes worse. Uncertainty makes for a depressed stock price. Most people don't have the sophisticated understanding of C-Cube's fundamentals as some on this thread do. Unfortunate for the Short Term; for these people are needed to become buyers to push the share price higher. My rankings of Cube are as follows: Short Term: Avoid. Medium Term: Hold. Long Term: Strong BUY. Personally, if I owned the stock here I would buy aggressively all the way down. But I wouldn't initiate a new position at this point of time. This is one of the worst economic environments in my most recent memory to hold or buy a security. I see things getting worse before it gets better. But that is another topic for another day. Just MHO.

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