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Technology Stocks : Creative Labs (CREAF)
CREAF 0.470+4.9%Jan 12 9:43 AM EST

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To: Chris Sholler who wrote (4109)10/9/1997 9:38:00 AM
From: Hitch   of 13925
 
Chris
Yes Chris I do take an interest in Creative's competitors- they do have an impact on the market-- but the ever increasing pressure in the Audio field and the effect on the bottom line is something that has been mentioned by Creative management. Management is aware of increasing interest in moving audio to the motherboard and makes mention of this, they are also aware of other audio add-on boards sold by the competition. The 96 annual report indicates that a variety of factors have resulted in increasing pressure and declining gross margins. Management has done a very good job in reducing internal costs and inventory levels, but they can only do so much along this line.
I don't rely on competitors for info on Creative and would encourage you to obtain info from Creative to verify what I have stated. The info that I have provided comes from the 96 annual report and subsequent company releases.
Best Wishes
Hitch
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