Creative Labs (CREAF) Message Board

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Technology Stocks : Creative Labs (CREAF)

CREAF 0.448

-4.6%

Dec 17 12:59 PM EST

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To: ronco who wrote (7614)	1/2/1998 4:33:00 PM
From: Douglas V. Fant	of 13925

ronco-dave- IMO here is the "big picture" I'm just not sure how it will play out with CREAF; so I "hedged" my bet and sold April 20 call options on 1/2 of my CREAF holdings. Asian issues will cause a contraction in the world economy. However conversely the US economy was beginning to overheat going into December. The contraction in Asia and slowdown of US exports IMO will be just the right medicine for the US Federal Reserve Bank to step aside and not raise interest rates in the US. Long-term lower interest rates are good for stocks. This "good" in North America should counterbalance some of the "bad" coming out of the economic contraction in Asia, and make the effect of the Asian crises more of a wash as North and South America and Europe enjoy the benefit of lower interest rates. Now how this works out for CREAF short-term I am not sure. Long term CREAF looks like a "big winner" through say 1999. Short-term here in 1998 I feel like the "unknowns" in Asia at least for a few months will hold us down. The key is acertaining specifically what the problems are. Once the full scope of problems in Asia are known, then they can be fixed, and of course they will quickly be factored into stock prices....... Not to belittle the problems in the rest of Asia but Japan is the key as the second largest economy in the world. As Japan goes, so goes Asia. Remember that one US Company GE is larger than the Indonesian, Thailand, Malaysian, and Korean economies combined. So while their problems are of concern, they will not have the impact upon the world economy as will problems in Japan.... Long on CREAF.... Sincerely, Doug F.

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