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Technology Stocks : Creative Labs (CREAF)
CREAF 0.4700.0%Dec 5 9:30 AM EST

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To: CHIP HUNTER who wrote (8881)1/24/1998 1:54:00 PM
From: Power ranger   of 13925
 
From the CC, the reasons for increase in inventory are ;

1) Inventory include stocks from new Acquisition, exclude them the stock is 119M

2) Q1 stock level was at it super low level, they just couldn't have enough then. At 69M, it represented only 2 weeks of sales. Sim did said at the Q1 CC that Creaf will built up their inventory for the coming quarters. Even at current level of 143M, it is still only 5 weeks of sales which is consider low when compare to the industry..

I am not saying Creaf is inmune to the Asia problem, this is a problem many companies have to face. If it hit America and Europe, remember everything is global now, we might even goes into a depression. With Creative Q2 sales to Asia standing at 16.5% of worldwide sales, I am concern but not overly worried.

PR
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