These Analysts are a jokes
I just can't understand, there are at least a few big houses in Singapore including Merrill, Prudential Bache, Goldman, DBS Securities that has a buy rating on Creaf. In fact, I saw a Prudential Singapore report dated 29 April that reiterate their buy on Creaf. Did we saw these in the wires? Now we have this Indosuez W.I. Carr downgrading Creaf to sell and immediately Reuters reported it expeditiously without fail. Does Reuters has an agenda against Creaf??
Now let's look at the reasons for their downgrade ;
<<SINGAPORE, May 5 (Reuters) - Indosuez W.I. Carr has downgraded multimedia company Creative Technology (CREA.SI) (CREAF - news) to a sell from a hold.
''Its third quarter profit of US$45.2 million was slightly below our forecast of $47.7 million,'' James Heal, Indosuez W.I. Carr analyst said in his weekly note, made available to Reuters on Tuesday. He said Creative was no longer on a growth path and its short-term performance would be impacted by a slowdown in the personal computer market.">>
Taking into account that other companies are losing their pants due to the Asian crisis, I don't want to argue with him about Creaf ONLY making a profit of US$45.2 million against their forecast of US$47.7 million. BUT "no longer on a growth path" Hey this take the cake! I will feel better if he said he don't believe a shits or give a damn to what were said in the CC when Creaf said their Q4 ending June 98 will be flat, but FY 99 will see a revenue growth of 20 - 25%. What he wants for growth - 200%?? To be fair, there is this Creaf Analyst conference in Singapore tomorrow, he can always give his opinions.after attending the conference. (Or horror of horror he was not invited, that why the downgrade.)
Name me a company in NASDAQ or Singapore SES that had the following qualities:
Beats analysts expectation in last 7 consecutive quarters.
Generate a net profit of about US$360M in the last 7 Q
Estimate to make about US$33M in their next Q ending June 98 (a flat Q also seasonal their weakest Q )
A conservative management giving a forecast growth of 20-25% in FY99 that starts in July 98
More then double their cash to about 400M (excluding their 1 time charges of 60M for acquisitions)
Zero debts
No.1 Brand name in their respective industry
Starting to get a lead on the graphic market which used to be their weakest link.
AND YET TRADING AT a FY99 PE of 6??????
Gimme a break - PR
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