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Technology Stocks : Creative Labs (CREAF)
CREAF 0.448-12.1%Dec 17 12:59 PM EST

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To: jeffrey roberts who wrote (12996)12/6/1998 8:20:00 PM
From: Beachbumm  Read Replies (1) of 13925
 
Looking at earnings for EMC, it is forecasted earn less than CREAF, yet is priced over 4 times higher. Extraordinary patience combined with continued good earnings will reap the stock price we all expect.

Talk about apples and oranges! EMC's gross margin last quarter was in excess of 52% (almost CSCO league) while CREAF's was about 28%. EMC's net earnings rose 44% y/o/y while we all know what happened to CREAF's. CREAF will never be valued like an EMC because it is not in enterprise businesses. That said, there's plenty of reason to be invested in a lower margin but low cost business that is generating a lot of cash. Somehow that cash will be returned to the shareholders (unless it is squandered, and CREAF mgmt has not shown a propensity to squander).

Beachbumm
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