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

To: SC who wrote (34623)	7/22/1998 5:10:00 PM
From: William T. Katz	Read Replies (1) \| Respond to of 50808

RE: Stock price appreciation != making business succeed You said "Without going into too much length into this, a company goes public to seek public capitals as means for financing itself, so that it can make more profits for itself and as a result make more profits for the public who invested in it. It has a very limited role in making a business to succeed and I did not say none." While I rarely agree with his Rareness, I have to disagree with you on this point. The perfect counterpoint is Microsoft. MSFT uses its stock appreciation to help make its business succeed. Getting quality employees and keeping them is very difficult. MSFT has done an outstanding job in using options and their stock to get and hold employees for a lower salary than competition because of stock supplements. CUBE, because of its stock performance, has a very poor track record and cannot use stock incentives to a similar degree as a Microsoft. I think there is a great underestimation of the "snowball" effect an appreciating stock price has on a company. The flip side is that MSFT stocks at this price has less upside than it did 10 years ago. CUBE is just getting started, but they need slow appreciation rather than wild oscillation to get the proper benefit.