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

To: Jonathan C. Williams who wrote (33370)	5/22/1998 1:33:00 PM
From: DiViT	Read Replies (1) \| Respond to of 50808

Divicom

To: Jonathan C. Williams who wrote (33370)	5/22/1998 3:06:00 PM
From: DiViT	Read Replies (3) \| Respond to of 50808

So are you saying products that have gross margins of 55% are commodities? Do commodity companies spend upwards of 20% of revenue on R&D?

To: Jonathan C. Williams who wrote (33370)	5/22/1998 6:41:00 PM
From: BillyG	Read Replies (2) \| Respond to of 50808

Commodities? Like Coke and Pepsi?

To: Jonathan C. Williams who wrote (33370)	5/26/1998 12:07:00 AM
From: William T. Katz	Read Replies (1) \| Respond to of 50808

"explain to me where the value is in providing a commodity to the market place (more specifically, C-Cube's products" Hmm. Divicom isn't providing commodity items. MPEG-2 encoders won't be commodity items for another year at least. And if you really feel that way, I suggest you put 100% of your money on short of Amazon.com and every CD e-retailer. Because C-Cube doesn't sell only commodity items but they are valued at a reasonable P/E and very reasonable future P/E. All the internet commodity e-retailers, though, are trading at thousand times projected P/E.