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

To: BillyG who wrote (33780)	6/11/1998 5:49:00 PM
From: John Rieman	Respond to of 50808

China post the first decline in year-over-year exports in 22 months. Domestic demand is falling. VCD was slower this Q, but still strong enough to meet C-Cube's projections............................. insidechina.com Exports Drop in May,1st Decline in 22 Months BEIJING -- (Reuters) China registered a trade surplus of $18.53 billion in the January-May period, but exports for last month alone dropped in the first year-on-year decline in almost two years, the Xinhua news agency said on Wednesday. Exports for the five-month period rose a year-on-year 8.6 percent to $71.11 billion. Imports rose 1.5 percent to $52.58 in the period, the agency said, quoting customs figures. But in what customs sources said was a clear sign that the Asian financial crisis has taken a toll on China, exports in May alone fell a year-on-year 1.5 percent, the first such decline in 22 months, Xinhua said. Imports in May fell by 3.8 percent, reflecting weak domestic demand, the report said. The trade surplus for last month reached $3.64 billion, it said. The 8.6 percent growth in exports during the first five months of this year is far short of the export growth of 20.9 percent China recorded for all of 1997. The poor May trade figures, following lackluster industrial production figures for January-May released on Tuesday, add to the pressures on China to stimulate its economy to stave off the financial crisis that has laid low its Asian neighbors. John Seel, sovereign analyst for Bear Stearns Asia in Hong Kong, said the weakening of imports reflected a troubling fall in investment demand that made China's goal of 8.0 percent economic growth this year looked unattainable. "That's a sign that Chinese demand is coming off and the Chinese economy is still slowing down," he said. "It doesn't necessarily mean that much, but it does mean that there is very little new investment demand that is sucking in capital goods," Seel said. The latest evidence of deteriorating export performance also casts a spotlight on China's repeated pledge that it will not devalue its currency to help its exports regain price competitiveness with those of Southeast Asian countries with weak currencies. In an address to a financial seminar on Tuesday, central bank governor Dai Xianglong noted the devaluation pledge but warned that China's economy was suffering from the recent plunge of the Japanese yen. Some analysts read Dai's remarks as a hint of a possible future retreat by Beijing from its no-devaluation pledge if Japan's currency continues its slide. ( (c) 1998 Reuters)

To: BillyG who wrote (33780)	6/11/1998 5:58:00 PM
From: Kai Wang	Read Replies (2) \| Respond to of 50808

Billy: I 100 PCT agree with you. Just some numbers to back up that China won't devalue its currency: Since financial crise last July, China has kept its currency RMB value tie to about 1 USD = 8.27 RMB. Unlike other southeast nations, China has 140 billion US dollar foreign reserve, and its short term debt is 14% of its total debt. With almost southeast asian nations plus Korean and Japan currencies like free fall, everybody thinks that China should devaluate its own currency, otherwise its export won't be competitive. Guess what? first 5 months of 1998: china's total import & export reaches 123.7 billion US dollar, an 10+% increase over 1997, with trade surplus about 18.5 billion USD. Chinese government has about 12 billion USD debt to Japan, in Japanese Yen. With Yen now trade at 143 level, actually saves chinese a lot of money. Another example is Indonesia: Last year when I went there, 1 USD is 2200 Rp, last month when I was there, (in the worst time of riots) 1 USD is 10000 Rp, now is 12500 Rp. But does Indonesia gain any strength in their export? No! Instead, they get high inflation rate. It's terrible there. (If you are a traveller, you pay much much less in US dollar,if you are willing to take that risk). I believe politically and economically, chinese know what they should do

To: BillyG who wrote (33780)	6/12/1998 9:20:00 AM
From: Rarebird	Read Replies (3) \| Respond to of 50808

The MASSACRE Of The Ice CUBE Has Just Begun: Watch Out Below: Investors have finally realized that being long the stock of a company that receives half its revenues from a country ( China ) that is under tremendous pressure to Devalue its Currency is akin to walking into a building where there is a FIRE! As the Yen continues to dramatically weaken ( Japan is now officially in a recession ), CHINA will have no choice ( and the Chinese know it ) but to Devalue their Currency. I'm not surprised that Cubies are still in the same mode of DENIAL. Yes, Billy, it's the same sad story for the Ice Cube. Over 3 million shares traded yesterday to push Cube down 18.5%. As usual, the Shorts came out like bandits here. There was NO NEWS either as to why there was such heavy Selling- a FACT that should be quite disturbing if your long the Stock. WHY such HEAVY SELLING? Yesterdays MASSACRE is an omen for further selling in the weeks to come. Certainly you can't be naive enough to think that this was merely a one day occurrence! A Bounce today or filling a gap on the upside is in order here. But WATCH OUT BELOW! CUBE gave a major sell signal when it broke below $20 a few weeks ago. Selling any kind of rally or bounce is in order here. The Stock IS GOING MUCH LOWER IN THE COMING WEEKS!