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

To: Ali Shahbaz who wrote (33794)	6/12/1998 12:47:00 PM
From: DiViT	Respond to of 50808

For those who are wondering why we sold off yesterday... Your not alone... C-Cube Micro Up 8%; Recovery From Thurs. Selloff Cited>CUBE 06/12/98 Dow Jones News Service (Copyright (c) 1998, Dow Jones & Company, Inc.) NEW YORK (Dow Jones)--Shares of C - Cube Microsystems Inc. (CUBE) added 8% Friday, rebounding from a substantial selloff on Thursday, according to one analyst. Dan K. Scovel, an analyst at Fahnestock & Co., said Friday's run-up is a correction the previous day's 18.5% downturn, for which he's been hard-pressed to find a plausible justification. "The real issue is, 'What clobbered it yesterday?"' he said. Scovel said at least part of Thursday's selling frenzy may have been precipitated by fears that China will devalue its currency in response to the Asian financial crisis. C - Cube generated 42% of its fourth-quarter revenues in that area of the world, Scovel said. The company makes digital video compression chips and software for the consumer electronics, communications and computer markets. Lehman Brothers Inc. analyst Ted Berg also cited fears of a Chinese devaluation for the movement on Thursday, and agreed that Wall Street's renewed confidence may be based on sentiment that C - Cube got a raw deal in Thursday's trading. "The market might be thinking that it was oversold yesterday," Berg suggested. Berg said C - Cube officials on Thursday guided analysts to the China-currency explanation, but they knew of no fundamental reasons why the stock price should be slipping. The company didn't identify any specific event or piece of news that may have acted as the catalyst for the Street's fears, Berg said. C - Cube recently was trading at 16 15/16, up 1 1/4 on Nasdaq volume of 872,700 shares. Average daily volume is 672,090. Company officials were not immediately available for comment. -Justin A. Oppelaar; 201-938-5175