Creative Labs (CREAF) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Creative Labs (CREAF)

CREAF 0.448

-4.6%

Dec 17 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: David Beckett who wrote (6568)	12/5/1997 3:04:00 PM
From: Hitch	Read Replies (1) of 13925

Just some odds n ends 7/01/97 S'pore $ 1.430/ US$----Yen 114.80/US$........ 12/05/97 S'pore $ 1.610/ US$----Yen 129.30/US$........ Creative according to DMG sources DVD machines from Panasonic and Toshiba and orders are placed on a weekly basis ie.Little inventory cost and benefit from weakening Yen. Substantial majority of Creaf components for all products are purchased from SE Asia corps. (weakening local currencies = lower real cost. to CREAF) Much has been made of the decline in sales in SE Asia and perhaps a slowing in sales in South America. PER DMG '97 sales break down as follows-- 3% Singapore, 50% America, 26% Europe, 21% rest of the world. Sim has suggested 10-15% revenue growth for this quarter and FY98 as a whole. Assume the analysts are correct and we have a 20% slowdown in non US/Europe sales----20% x 24% = decline of 4.8% of total sales... in weak currency areas. Assume Sim is correct and the US/Europe market increases by 10%... 10%x 76% = overall sales increase of 7.6%.... 7.6 - 4.8 = +2.8% overall sales increase, this is using the most drastic % decline in SE Asia sales that I have seen, and the minimum sales increase indicated by SIM. It would appear that we can expect a sales mix as follows---80% US/Europe,... 20% Rest of the world. So it would appear that CREAF will sell 80% of it's products in regions with strong currencies and purchase a substantial majority of it's components from companies located in regions with weak currencies. (that sounds like margin expansion to me) The US dollar has gained approx. 12% versus the YEN since 7/1/97 and 12.5% versus the S'pore dollar in that same period. As I said,, just some odds n ends Hitch

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next