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

To: DiViT who wrote (26937)	12/19/1997 10:49:00 PM
From: Rutgers	Respond to of 50808

How's this for an oldie, but a goodie???????????????????????????????? C-Cube Shares Tumble; China Sales, Technical Downgrade Cited Dow Jones Online News, Wednesday, November 26, 1997 at 18:48 By Janet Morrissey Staff Reporter NEW YORK -(Dow Jones)- Shares of C-Cube Microsystems Inc. fell 13% Wednesday as Wall Street appeared to respond to concerns about sales in China, an analyst's technical downgrade and a Sony Corp. unit's planned introduction of a new encoder device. The shares (CUBE) closed down $3, or 13%, at $20 on Nasdaq volume of 2.8 million, compared with average daily volume of 1.3 million. The Milpitas, Calif. maker of video decoder chips relies on the Far East for 40% to 45% of its total revenue, and analysts think the company might therefore be more susceptible to the ups and downs of the Chinese economy than other semiconductor companies. Concerns are currently reverberating through the investment community about lower-than-anticipated sales of consumer electronics in China this quarter and a price war heating up in that country on digital video chip technology. "Consumer electronics sales have not taken off the way they were expected," said C.E. Unterberg Towbin analyst Tejinder Singh. But he said it's too early to tell if the sluggishness will continue through the selling period leading up to China's New Year in February, which is traditionally the country's strongest sales season, Another analyst, Steven Frenkel of Paragon Capital Corp., said he, too, heard talk of a price war heating up in China, but he concurred that it's premature to project its impact, if any, on C-Cube's financial results for the fourth quarter. One analyst, Ken Tower of UST Securities Corp., downgraded C-Cube to sell from hold based solely on the supply-demand ratio for the company's stock. It reflects technical chart analysis, not company fundamentals, Tower said. The analyst said the adjustment was made after the company's share price began falling after climbing steadily to 31 in August. Since that time, the stock has fluctuated - reaching as high as $35 in October and dropping to as low as $19.75 Wednesday. Fueling investor concerns further was Sony Semiconductor's (SNE) recent news that it plans to introduce its first single chip encoder - the CXD1922 - in the first quarter, which would compete with C-Cube technology. C-Cube Chief Financial Officer John Hagedorn agreed the sales and pricing concerns in China as well as the technical downgrade were probably responsible for the stock's decline. But Hagedorn dismissed suggestions that Sony's new chip could pose a competitive threat to his company's product. "Most customers (for the chip) are competitors of Sony," he said, "and I can't see Panasonic and Toshiba buying from their competitors." Hagedorn said he has not yet noticed any unexpected sales declines in China. He said October sales were on track and he said it's too soon to project C-Cube's total sales for the fourth quarter. Although Hagedorn acknowledged price declines in the current quarter, he said he remains comfortable with analysts estimates. A consensus of six analysts surveyed by First Call estimate C-Cube's fourth-quarter earnings at 28 cents a share. Copyright (c) 1997 Dow Jones & Company, Inc. All Rights Reserved.

To: DiViT who wrote (26937)	12/19/1997 11:07:00 PM
From: Rarebird	Respond to of 50808

David, in a Bear Market like this you can basically only trade short term for profits. Technical and sentimental analysis are great aids here. The long term fundamentals are usually ignored in a Bear Market. Watch Cube and even Intel ( to a lesser degree) this week. Both stocks had short term reversals on Friday. I think they will rally 20% and 10% respectively, before they both turn down again. Rallies in a Bear Market are usually short and sharp. Then they just fizzle out, and turn down. I'm almost certain here that we are in a Bear Market. The big losses and greatest heartache comes at the end. Unfortunately, stocks like Cube get hit the worst. I would expect Cube to be sold off after they report earnings in January, unless the earnings are of the blow off type.

To: DiViT who wrote (26937)	12/19/1997 11:21:00 PM
From: Chemsync	Read Replies (1) \| Respond to of 50808

12/19 22:19 Japan broadcasters JSkyB, PerfecTV to merge -paper TOKYO, Dec 20 (Reuters) - Japanese satellite broadcasting companies PerfecTV Corp and Japan Sky Broadcasting, partly owned by Rupert Murdoch's News Corp <NCP.AX>, are expected to merge in February, a Japanese financial daily reported on Saturday. The two satellite broadcasting platforms, which currently share hardware and some programming, raised the merger plan during meetings in Tokyo this week, the Nihon Keizai Shimbun reported, citing sources to the talks. Company officials were not immediately available to confirm the report. Rupert Murdoch, who is visiting Japan, and representatives from the Japanese partners in JSkyB -- electronics giant Sony Corp <6758.T>, national network Fuji Television Network Inc <4767.T> and software publisher Softbank Corp <9984.Q> -- proposed the merger to PerfecTV officials at the meeting, the paper said. If the deal goes through, it would create the largest direct satellite broadcasting platform in Japan, and Sony Corp, which is also a PerfecTV stake holder, would likely be the largest investor in the new venture. PerfecTV is expected to accept the merger proposal next week and the two companies hope to reach a basic agreement by the end of January, the paper said. The new company would have capital of 40 billion yen ($310 million) and the Ministry of Posts and Telecommunications is ready to support the merger, the paper said. If the companies merge, it would deal a severe blow to competitor DirecTV Japan Inc, which began service on December 1. The main investors in DirecTV Japan are DirecTV International Inc, a division of Hughes Electronics Corp <GMH.N> of the United States, and Japanese video rental chain Culture Convenience Club Inc. PerfecTV has been in operation for a little over a year and has about 410,000 subscribers, while JSkyB was expected to go into operation next April. Industry sources said it would be difficult for Japan to support three separate satellite platforms, adding that they had ÿ ÿ