To: Bob Strickland who wrote (38202 ) 1/13/1999 6:14:00 PM From: DiViT Respond to
Tune in for profits...forbes.com forbes.com forbes.com forbes.com Divicom forbes.com Some 60% of C-Cube's total revenues came from the DiviCom unit in the third quarter, says Brian Alger, also with Preferred Capital Markets. There is also some cross-selling going on, in that DiviCom uses some of C-Cube's chips in its products. C-Cube's primary business is to design integrated circuits that compress digital video signals. Robert Gintel, manager of the $186 million Gintel fund, has 4% of the fund's assets tied up with C-Cube. "We bought it because I was intrigued with the idea that you could view a movie on CD disk and I thought the CD would replace the videotape format," he says. Gintel bought the stock at $25 in mid-1996, at what he thought was a cheap price after a high of $70 earlier in the year. Recent price: $17. He, too, blames China for the stock's performance. "A competitor came in and ruined their Chinese business," he says. "When they cut prices it took all the jazz out of the business." Gintel says, "We think it has a future--we're not sure what it is, but we're going to sit and watch and wait."
