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

To: Cameron Lang who wrote (49340)	5/15/2000 11:52:00 PM
From: Cameron Lang	Respond to of 50808

SmartMoney picks 7 "home run" stocks in the new issue. Digital video is well-represented (Zoran and Pinnacle). Excerpts: Even at 50 times earnings, Pinnacle has plenty of fans. Peter Chin, manager of the Scudder 21st Century Growth fund--up 124 percent last year--says it is the clear leader in digital editing. "One question we ask is 'Are you obsoleting your own products?'" Chin says. "They very clearly are." Now Zoran is among the largest independent suppliers of chips for DVD systems. Earnings more than tripled in the fourth quarter (to 26 cents per share) as digital video edged into the market. Manufacturers including Toshiba use Zoran's popular Vaddis decoder because it reduces the number of chips and the required memory in a DVD system. Its chip also supports SuperVCD, a video player format popular in China and East Asia. Pinnacle is a C-Cube customer. Zoran means "silicon" in Hebrew and is CUBE's competitor. But, from Lehman's report: The only other publicly traded companies in digital video are Zoran (ZRAN, $44, Not rated) and ESS Technology (ESST, $12, Not rated). However, the technology breadth of both of these companies is well below C-Cube's. Therefore, we believe that C-Cube should trade at a significant premium to these companies.