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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: Jon Tara who wrote (4269)10/18/1997 12:03:00 PM
From: Fred Fahmy   of 13925
 
Jon,

<Fred, valuation doesn't mean boo if nobody is buying.>

IMO, you have this backwards. Long term, whether people are buy or not is determined by valuations (i.e. fundamentals). Good companies with sound financials and good prospects do not stay undervalued forever. Eventually, the stock price catches up with reality.

Even in a bear market some stocks will do better than others and some will do very well. Stocks will unreasonable valuations, however, don't stand much of a chance.

I remain convinced that CREAF will see mid 30's before the end of 1997 unless they miss earnings and/or have negative forward looking comments. Their new product cycle should carry them for at least a few more quarters.

Good luck to all,

FF
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