Doug and rest of board:
I now own more CREAF than I ought to--was already in at 24 1/2, doubled up at 22 3/4 this
morning at opening, and doubled up again --yes, four times what I had yesterday---at 20 1/2.
Average price of today's bargains was 21 1/4. This looks good, but I am nervous--lack of diversity for one thing.
As to CREAF, there is no bad news---and yet stock is at a current PE of 8.8, a FY 1998 PE of less than 8, and
a FY 1999 PE of 6. If you deduct the five bucks in cash per share they have,
the PE's are more like 6, 5.5, and under 5.
So what gives? Three things--there is no bad news coming, but three things hurt us:
1) Saying there were two big COMDEX announcements, and not delivering. We were better off
before COMDEX at 27 with good fundamentals until that announcement.
2)Ng or Chay or ML or someone unloading all the stock they could--IR at CREAF gives that as a reason for the selloff;
3) The ML downgrade.
The company can't control #3. It can't control #2, either, but it could issue a public statement about it,
and they should--its just what IR was saying to anyone who calls. Sim does not care for his stockholders much, does he?
Finally---#1 is totally Creaf's fault--you can't make statements like that and not produce.
If the deals were not finalized, Sim should have kept his mouth shut.
Because if he does not produce the deals and get the price back up, he will learn
about the American custom known as SHAREHOLDER LAWSUITS!!!!
CJAY
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