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

To: Rarebird who wrote (36692)	10/13/1998 6:22:00 PM
From: Helios	Read Replies (1) \| Respond to of 50808

Rarebird ,yes my analysis is superficial as it draws attention to the changes in the CUBE story as reflected in the quarterly report. There are others on this thread who are better able to lay out the full story and any frequent reader of this thread has picked up on it. I can't agree that your analysis has been right on. First we are not sitting at 8 bucks a share now. Second although your reasons for getting there seem to change daily (The dollar's too strong! The dollar's too weak! The sky is falling! The sky is falling!), I recall that it started out with China devaluing. Well they have not devalued. They did not devalue not out of the goodness of their heart, but because they did not perceive it to be in their best interest to do so. Your mistake was in lumping China with the other Asian nations, a bit of eco-cultural prejudice on your part I suppose. When you get beyond that, you are left with the fact that this economic turmoil was caused by the other Asian nations losing their competitive positions to China. Everything else, bank and stock market failures currency flight, was more a trigger or an effect than a cause. For this reason, one thing that disturbs me about this report is that it seems that CUBE has lost the stomach for a fight for market share in China. If it is true then I think it is short term thinking on their part. I think they should dig in and take a hit in margins if necessary to stay on top of the digital business there.