CREAF is based in Singapore, and from what I've read here on SI their market isn't being hurt as bad as, say, South Korea. But even so, a currency devaluation in Singapore would be good for CREAF, since most of it's revenue is in US dollars, most of it's cash is in US dollars, and most of it's expenses are in Singapore dollars.
Box makers didn't have a very good Christmas, it seems, and may be ordering fewer components from CREAF. But, most of CREAF's sales are direct to consumers, not to OEMs. If people are buying fewer systems, they're more likely to upgrade the systems they own, and this is where CREAF's products tend to be sold. So this could be a good sign; only time will tell.
Merril Lynch owns a great deal of CREAF; enough to manipulate it's price. They downgraded CREAF in December during that big drop, then upgraded it again in late Dec. Now CREAF is their #1 asian stock pick, on a list you can get if you have an account with them. CREAF has great fundamentals, and there's a good chance that these large price swings are due to manipulation by major owners.
Doug. |
