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Technology Stocks : Creative Labs (CREAF)
CREAF 0.448-12.1%Dec 17 12:59 PM EST

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To: Rutgers who wrote (4696)10/22/1997 8:02:00 PM
From: Alan Chan  Read Replies (1) of 13925
 
<Tonight's Evening News: Taiwanese ...>

Trust the newscasters to get it wrong! Someone on this thread even got it as Korean. Luckily for those of us who believe that CREAF will deliver it is neither, since Taiwanese and Korean gives us the notion of poor quality and gross mismanagement, respectively. Anyway, CREAF's primary listing is in the US (It intial application to list in Singapore was turned down). It finally listed itself in Singapore many years after its listing in the US. Most, if not all its research facilities are in the US. It's manufacturing facilities are mainly located in South East Asia with some OEM products from Korea. We will continue to see good margins for a while more since the SEA currencies, including the Korean won, have depreciated considerably (12-50%) against the US$ in the last few months.

From 'newscasters' we move on to 'analysts'. Most of them are wrong again. I wonder if the Yau guy who gave the thumbs up sometime ago to the 'death' of CREAF (due to an innovative software solution to sound) ever get the boot. There will be other analysts who will tout that CREAF will die because the soundcard business is going to be dead. Time and again , Sim has proved them wrong. The sound card upgrade business may die one day (IMO, not within the next 2 years), but CREAF can and will surely diversify to other 'sunrise' areas given their strength in R&D (among the niche companies). I personlly believe that CREAF's price will eventually move up to its proper place (i.e. a PE of between 15-20).

Regards.
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