C-Cube Message Board - Msg: 8353616

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Technology Stocks : C-Cube

CUBE 36.64

-0.5%

Dec 5 9:30 AM EST

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To: DiViT who wrote (39298)	3/16/1999 7:33:00 PM
From: Bob Strickland	Read Replies (1) of 50808

BRCM has a P/E over 100 but C-Cube can't keep one over 20. A dog is a dog no matter how you cut it... It is difficult to make a true valuation comparison to its peers because of C-Cube's unique combination of consumer electronics chips and broadcaster transmission systems (the Divicom business). Suffice it to say that most companies involved in semiconductors and digital transmission systems are trading at much higher multiples, many like Broadcom (Nasdaq:BRCM - news) are trading well over 100 times 1999 estimates. Even the S&P 500 is trading at 29 times 1999 earnings estimates, despite an expected growth rate of just 7% for aggregate earnings. If C-Cube can live up to the long-term growth expectations, and perhaps show that it's more than just a DVD story, there would seem to be a lot of room for expansion in its P/E multiple.

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