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

To: J Fieb who wrote (40134)	4/25/1999 6:29:00 PM
From: Black-Scholes	Read Replies (1) \| Respond to of 50808

The best think about sleep is that one awakes refreshed. I've been following this thread since I've been following the stock - for about three years. I like the company. The management is not nearly as bad as this thread would have the readers think. In my opinion they are classic victims of non-coverage by Wall Street. C-Cube is ignored by the street now simply because they have no need for any additional capital. If you don't believe me, check out the shameless "whoring" that is taking place by the big brokerage houses (i.e. Merrill, Salomon) falling over themselves NOT to insult AMZN in order to get AMZN's future equity and debt offerings. It's pathetic not to mention dangerous to the unsophisticated investor. What I like best about CUBE is that they spend a VERY healthy amount of money on R&D - money that easily could be reported as earnings. As far as a value for C-Cube ----- I could pontificate for hours (and have) about this subject but here's a quick back-of-a-napkin analysis: Four quarter trailing earnings: $1.16/dil. sh. About half of those earnings come from the "communications" market. The market has been awarding companies in this sector on average a trailing PE of 40. 40.59 = $23.2/dil.sh. The other half of CUBE's earnings come from the "semiconductor" market. Let's be conservative and award this industry a PE of 15. 15.58 = $8.7/dil.sh. $8.7 + 23.2 = $32/dil.sh. Here's the kicker: About $5.75/dil.sh. of CUBE is CASH!! Back that out as any takeover firm would do in their calculus and one can start to see one undervalued asset here.