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Technology Stocks : Creative Labs (CREAF)
CREAF 0.448-4.6%Dec 17 12:59 PM EST
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To: Gambit who wrote (13159)12/18/1998 9:39:00 AM
From: Dennis G.  Read Replies (2) of 13925
 
I don't think that CREAF wants to be in the graphics chip business and I really don't think they should be either, to tell you the truth. If they buy out a designer, they are basically stuck with what they produce. If they miss a design cycle or come up with a poor chip, they are screwed, like SIII and TDDDF did to themselves.

I would much rather see them buy out Aureal and grab the sound business now. They could sell both cards at the same margin levels and let the market decide which they wanted. Perhaps they both have their place. But they could be making money on both. And they would have Aureal's people inside their organization working for them. They have Aureal between a rock and a hard place right now with the patent suit. I say work the best deal they can and get it done. I think the Aureal people would go along at a reasonable price because they would be getting a piece of the pie too.

Dennis
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