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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: eddie who wrote (5050)10/26/1997 4:14:00 PM
From: Holger Johannsen  Read Replies (2) of 13925
 
Hello Eddie,

I'm new to this board and therefore I hope I don't ask questions that have been answered many times before. Also please excuse my English since I'm no native speaker.
Since I don't believe much in TA all I'm interested in are fundamentals about the company. The CREAF Homepage is not very informative but I hope some well informed investors on this board can help me.
Taking a look at the most recent earnings report and the valuation of the stock made me quite curious about CREAF. I think about taking a long position but I still need more facts and opinions.

First of all I would like to know about their production facilities. Do they produce mainly in Asia and can they profit from the current currency turmoil in Asia?

What is the percentage of sales going to Asia, US and Europe?

Since I'm a long term investor I'm interested in a good story. What is the story behind CREAF? I know that they produce very good products but how do they differentiate themselves from all those other companies (Terratec, Aztech, Logitech etc.)?
As long as we had Dos as the OS for all games one had to buy a Soundblaster to be on the safe side concerning compatibility but with Win95 all you need is a good driver. Therefore I fear that soundcards will soon become a commodity like product.

How good is CREAF's management team?

What will be the next upgrade cycle for soundcards? Don't we already have a superior sound which can't be improved?
As long as there is no new breakthrough I feel most users will just put their old soundcard in a new computer and thus save the money for a soundcard from CREAF.

Concerning CREAF's video card I wonder about the success of non-3Dfx chips. When it comes to games all I see are games compatible to 3Dfx.

Last but not least I wonder about the competition from chip makers (Cyrix, Intel). The Cyrix solution does not offer good sound yet but perhaps in a few years from now the soundcard will be built right on the chip or motherboard and CREAF will be out of the game.

Thanks for any help.

Holger
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