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

To: Ed Newman who wrote (33397)	5/24/1998 8:25:00 AM
From: Helios	Read Replies (1) \| Respond to of 50808

That's a question that is often asked here, we should have a permanent link with the answers. Briefly since Cube still derives most of its revenue from China the threat of devaluation of their currency or of a banking crises is very serious. Thus the short term risk in holding cube is substantial. Although Cube is a leader in digital video, whether they can maintain their lead or not over the long term is open to debate. I think they will, but things move so fast in this business you just can't be sure of anything. Product cycles are short and there all always third tier companies looking to swoop in on a high margin chip when they figure out how to build it. We saw that with ESST last year and to CUBE's credit they met the challenge but the price war wrecked havoc with the stock price.