Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JPM who wrote (26510)	12/11/1997 2:47:00 PM
From: Stoctrash	Read Replies (1) \| Respond to of 50808

If visibility into '98 were very clear they would. But...this Asian thing is clouding the waters. This pains me to say it..... but Rarebird is right on the market. His cash flow and disinformation on CUBE is wrong, but that don't mean it won't slide with the market.

To: JPM who wrote (26510)	12/11/1997 2:53:00 PM
From: Ed's Head	Read Replies (1) \| Respond to of 50808

John Paul Marusich: I prefer R&D at this time! Although buy-back's can boost shareholder value, so can leading the industry with the best product boost shareholder value! good luck c-ya!

To: JPM who wrote (26510)	12/11/1997 3:43:00 PM
From: John Rieman	Read Replies (3) \| Respond to of 50808

Cube's current cash isn't needed for R&D, unless revenues drop drastically. Cube has managed to pay for R&D out of current revenues. They do need to keep some cash, but current levels are too high. They will need to do something with it. Here's my list of uses, in the order that they would do the most good: 1. Buy back the bonds. Cube has issued convertable bonds with a strike price just under $31. They represent 3 million shares in the future. It would cost $90+M to call them, but worth it. The interest rate is under 6%, Cube might think it's cheap money. 2. Acquire another company to add product lines(ala Cisco). Is there another Divi out there? 3. Securing fab space. Some companies need to pay in advance for fab space. Hagedorn didn't have to pay Tiawan Semi the second installment, but ESST did. 4. If their is no better use, a share buy back is inorder. I prefer the other three though.