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Technology Stocks : Creative Labs (CREAF)
CREAF 0.4480.0%Dec 18 4:00 PM EST

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To: Rutgers who wrote (6681)12/6/1997 11:28:00 PM
From: Douglas V. Fant  Read Replies (1) of 13925
 
Wannabe, In certain countries such as Thailand and Indonesia the private sector like Mexico a few years ago has run up too much debt. They certainly won't be buying much CREAF products for a while. But realistically what portion of CREAF's business is in these countries? Check "Rest of World" figures from my previous post- i.e., not a lot. So I do not belittle the impact of an Asian economic slowdown. But I think that a 30% penalty in price more than accomodates (sp?) an impact upon a region which produces 25% of CREAF's total business, and also perhaps the lack of "track records" yet for the whole new wave of CREAF products just on the market.

Now if CREAF's profits collapse OK- sure run the price down. But don't tell me that a top line multimedia company like CREAF with potentially $2.50 earnings is worth $20/share, while a top line search engine company such as Yahoo with thunderous $0.23 earnings in 1997 is worth $50/share!

Sincerely,

Doug F.
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