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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: stockroach who wrote (13889)	2/14/2000 6:36:00 PM
From: Fred Fahmy	Respond to of 13925

stockroach, <It amazes me that you are still in this stock.> Yeah, I agree, it is pretty amazing....but remember, I only have 1/3 of my original position. 2/3's were sold at 15 on the way down to 10 and reinvested in something that doubled while CREAF was still around 10. <You have done nothing but criticize the management.> I have been highly critical of management and I do think they have made many mistakes....but I have done more than criticize. I have pointed out many things I think they have done right...in the past...and more recently. < I for one never invest in a stock that I believe has bad management.> Obviously, when I first invested in CREAF I had a different opinion of management. After watching them closely for more than two years...I'd like to think my opinion is more informed. I kept 1/3 as a speculative play because I have deep respect for CREAF's products, their brand name, and their engineering team and I think the market they are in has enormous potential. I added to my position at 17 7/16 to ride the vc/internet momentum. Looks good so far <g>. BTW, do you remember people on this very thread calling for CREAF to develop an internet strategy more than two years ago?? <you should have been able to make money with this stock> The 1/3 I have remaining is at a basis of 14 1/8. Those plus the new shares I have at 17 7/16 are all quite profitable. The initial 2/3's was bought in the low 20's and mid-high teens. The two year loss I took on those when I sold at 15 was much more than made up in a matter of a few weeks. <There will be some tough quarters ahead but I believe this company is putting itself in a great position to keep growing.> Keep growing??? This will be CREAF 4th consecutive year of relatively flat revenue combined with DECLINING earnings. There hasn't been any growth....that's been the problem. I do believe that they have now turned the corner and should start (not keep) growing (albeit vs. an easy comparison last year). Another major key, IMO, is that expectations have finally been lowered and brought in line with reality. It took Sim about 6 quarters to realize that when you lower guidance you'd better lower it enough to at least meet it. I think the hifi.com ipo news should help take the stock to new highs. Right now, I am in this for the short/intermediate term. However, I think investing is dynamic not static, and if things continue to progress in the right direction (i.e. revenue and profits begin to grow) I could end up holding some of my position for longer than I planned just a few months ago. Good luck to both of us and all CREAF longs, especially the old timers, FF