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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 (13509)2/2/1999 11:24:00 PM
From: Fred Fahmy  Read Replies (1) of 13925
 
I think there are limits to how low this stock can go. I see the following providing support at these levels.

1. buy back power (no matter how poorly executed will offer some support)

2. book value of $6.7

3. $4/share cash

4. P/E of 7.8

Of course this is CREAF....which can and has defied all logic. It could drop more, but I don't think it would stay down below these levels for long.

Look at the numbers above and keep in mind that despite flat growth, CREAF remains a cash generating machine. If CREAF ever announced that they had hired an investment advisor to look at potential options (i.e. buyout), this stock would double in one day. Unfortunately, I think Sim would rather die than give up his "baby".

FF
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