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

To: robt justine who wrote (28796)	1/26/1998 8:44:00 PM
From: John Rieman	Read Replies (4) \| Respond to of 50808

One would think that the analysts would know that Cube's second Q has been a problem, and is one Hagedorn wants to solve this year. With VCD's continued price declines, and the not a big enough DVD-ROM market, pre-Window98, he has little to put into Q2 to grow over Q1. However, Q3 grows, Q4 grows.

To: robt justine who wrote (28796)	1/26/1998 8:49:00 PM
From: DiViT	Respond to of 50808

FFBN Converts Wrap: CUBE /DIGI Hold Up Under Barrage 01/26/98 Federal Filings Newswires (Copyright (c) 1998, Dow Jones & Company, Inc.) ISSUER: FEDERAL FILINGS BUSINESS NEWS SYMBOL: X.FFI WASHINGTON (FFBN) -- The primary market perked up Monday night with two new convertible deals on the table. While traders drooled in anticipation of the new issues, some in the secondary market appeared to be holding ground in the wake of some common stock hits. Converts traders were cheery about Ciber Inc.'s (CBR) $100 million structured yield products exchangeable for stock (STRYPES), due to be priced by this morning. The registered offering through Merrill Lynch is expected to be "double A minus" rated, and matures in three years. Price talk on the issue is rumored to yield 8% with a 30% premium. "That's pretty aggressive pricing," said one buy-side converts specialist, "but it's got a good rating and its registered." Other traders were bidding the issue in the gray market as high as 1 5/16 above par. Ciber stock was off yesterday, declining 3 1/8 points to 54 1/8. Ciber filed the 1.75 million shares underlying the STRYPES owned by the company's chairman and chief executive, Bobby G. Stevenson, with the SEC in early January. Ciber is an information technology consulting company. In addition, Avatar Holdings (AVTR) is heard to be readying a $100 million convertible bond offering for marketing tonight. Market chatter has the Oppenheimer-led deal pegged at a 6.75% coupon and a 20% premium. Avatar stock closed yesterday's session on a losing note, 2 5/16 points south to 27 3/16. Primary issues were not full of good news, however. The fallen angel, Kennametal Inc. (KMT) was dealt another blow as rumors surfaced that its proposed $225 million Feline PRIDES offering was not only delayed, but cancelled. "It may be only a matter of semantics," said one market specialist, "but I wouldn't hold my breath for this one." Earlier yesterday, Standard & Poor's revised its outlook on the firm to negative from stable after the company postponed the PRIDE. last week, Kennametal postponed the offering of not only the converts, but 4.3 million common shares and a $450 million senior debt offering, citing unfavorable market conditions. Kennametal shareholders yesterday faced a tough ride, watching the stock tank 1 1/8 point to 47 3/8. In the secondary market, two communications firms were actively traded. DSC Communications Inc. (DIGI) stock slumped to 18 from 20 7/16, ahead of the company's late evening disclosure of disappointing fourth quarter earnings. DSC posted operating income for the quarter at 30 cents per share, two cents below First Call estimates. Earlier in the day, UBS Securities Cut DSC Communications to "hold" from "buy." The 7% convertibles due 2004 stood strong at 93.5, off only one point, compared to the 11.9% tumble in the stock. "The bonds seem to be holding there," said one trader, "we'll see how well it holds up tomorrow. The coupon held it up today." The bonds stand 57.3 points above parity against the common. Comcast Corp. (CMCSA) converts continued active trading yesterday on an absence of news. Comcast stock slipped 2.1% to 32 9/16 from 33 1/4. Meanwhile, the 1.125% converts barely budged, dipping 0.125-point from 68. The converts are 5.0 points above parity. In the hectic tech sector, C- Cube Microsystems Inc. ( CUBE ) stock slumped 5.3% after it took a one-point loss to 18 on an absence of news. The 5.875% converts due 2005 fared much better, losing only 0.6% to 87.5. The bonds are 28.9 points above parity. Quantum Corp. 7% converts due 2004 also changed hands, moving similarly south. The bonds shed 0.25-point to 94.75, a 0.3% shrink compared to the 0.6% loss in the common stock. Quantum shares declined 1/8-point to 21. Quantum converts closed 49.4 points above parity against the common. S3 Inc. (SIII) will be one to watch today, according to some traders. Last night, the company posted fourth quarter operating income of three cents per share, matching First Call predictions. In yesterday's session, S3 stock dipped 1/16-point for a 1.2% decline to 5. S3 bonds held up better, knocking off only 0.375-point to 68.5, a 0.5% move south. -- Yodia T. Lo Convertibles Analyst (202) 628-7670 /www.fedfil.com/support // (END) FEDERAL FILINGS-DOW JONES NEWS 01-26-98