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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: coopie who wrote (47118)	10/29/1999 8:11:00 PM
From: coopie	Respond to of 50808

Just saw a classic scene - Lucy holding the ball for Charlie Brown in the Halloween episode. She gets him to try the kick again, because she "has a signed document". Charlie Brown says it must be true, because it's a signed document. After she pulls the ball away again, she notes "it was never notarized". Was the deal with HLIT ever notarized??? Good Grief and Good Luck.

To: coopie who wrote (47118)	10/29/1999 8:38:00 PM
From: Jim Ray	Read Replies (1) \| Respond to of 50808

coopie, I am not responding to your post specifically. My question is directed to anyone with the answer. Who gets to make the decision on whether to spin the semi division or sell it? Is it HLIT management or CUBE management? I personally think this deal SUCKS because of the way it is structured. It should have been a straight stock switch, 1 HLIT for 1 Cube. And then let HLIT do what ever they wanted with the semi division. This way after WE pay the taxes on the semi division, we still end up with mid $40s for our Cube stock. JMHO Jim Ray

To: coopie who wrote (47118)	10/29/1999 10:00:00 PM
From: Lane Weatherly	Read Replies (1) \| Respond to of 50808

Coopie, sorry to disagree, but semi-cube alone is "the leader" in several emerging markets of digital video. And this deal gives strength to that statement(+10M annually), plus many other advantages(read earlier posts). To quantify semi-cube at those prices is ridiculously low. As I understand it, it will cost 50M to stop the deal. Look at Balance sheets & see if you think that will happen. Appears rock solid & very good for Whole Cube shareholders from where I sit....and potentially could get be a blockbuster deal in the long run.

To: coopie who wrote (47118)	10/30/1999 12:42:00 AM
From: Black-Scholes	Read Replies (2) \| Respond to of 50808

"If C-semi is spun, then you pay the tax on the value." Coopie, I'm not sure a "spin-off" is a taxable event. I could be wrong, I just don't think it is taxable. There's really, technically, no change in ownership - it's a tracking stock. Anyone? I'll consult my "Stickney and Weil" accounting book. CUBE semi is ABSURDLY undervalued regardless.

To: coopie who wrote (47118)	10/30/1999 1:18:00 AM
From: Black-Scholes	Respond to of 50808

And I'm not sure it would be rational for the market to value a company by it's after-tax liquidation value - like your method of valuation. I mean, we could cut all company's valuations by a third doing that. If CUBE actually sold the semi division for CASH, then yes - your method makes sense. But spinning it off or receiving some other company's stock in a pooling-of-interest stock swap - no, I don't think that would make sense. It should be valued like any other free-standing company - by discounting out its cash flows and summing them.