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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: Dennis G. who wrote (6360)12/3/1997 4:11:00 PM
From: Jon Tara  Read Replies (6) of 13925
 
Do something positive with all that cash? Buying Cambridge wasn't positive? They just bought themselves instant credibility and a guaranteed review by every hifalutin' audio reviewer. And entre' into a much larger market (home and mobile audio) that Cambridge could be a major player in. (Save for previous lack of capital.) Cambridge has the credentials - they just needed the backing.

On the other hand, there could be some nervousness about Creative moving into this highly-competitive market, since they have had their sound card market practically all to themselves.

Has anyone here carefully studied the HIFI acquisition from a financial viewpoint, though? I'll admit that I haven't. I'd hate to think that there was an obvious reason for the drop over the past few days that we have missed. How has this acquisition impacted their financial ratios, etc.?

I am not all that big on a stock buyback, as that doesn't really do anything productive. The only buyback that would be meaningful would be a one-shot buyback of all of the shares still held by Chay and Ng. And maybe toss-in ML - the hell with them. :)
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