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

To: jgideon who wrote (4467)	10/21/1997 4:55:00 PM
From: ChinuSFO	Read Replies (1) \| Respond to of 13925

I'm sure Wall St will find a way to make CREAF go down on this news.

To: jgideon who wrote (4467)	10/21/1997 5:10:00 PM
From: ItsAllCyclical	Read Replies (2) \| Respond to of 13925

Does anyone know how they've been able to squeeze margins over the past 5 qrts? I agree, we need seq. rev growth as well as earnings for creaf to achieve a higher multiple. Jim

To: jgideon who wrote (4467)	10/21/1997 5:11:00 PM
From: Dennis G.	Respond to of 13925

You're right jg. If there are any negatives in the report, the analysts and manipulators will harp on them relentlessly. The shorts don't give up that easily. Merrill has a conference call tomorrow and will likely issue a release. Hope it's an earnings upgrade. If CREAF can garner a couple of upgrades, then we should be back on track. But it's clear from the report that the strong dollar and weak Asian currencies are really boosting their margins. Since this is likely to continue, no reason to believe we've seen the end of good margins. Dennis

To: jgideon who wrote (4467)	10/21/1997 5:12:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 13925

Yes, eventually they will run out of rabbits, hats, or both...

To: jgideon who wrote (4467)	10/21/1997 6:09:00 PM
From: Vanni Resta	Respond to of 13925

I agree. Top line growth of 10% is not very impressive. Vanni

To: jgideon who wrote (4467)	10/21/1997 7:37:00 PM
From: DD™	Read Replies (2) \| Respond to of 13925

"Revenues will still be a worry to Wall Street." Perhaps. And perhaps not. Case in point: JBIL When JBIL began its meteoric asent beginning in spring following its 2/28 earnings report ($35/share), they reported flat sales, but EPS growth of 70% (Revenues for the quarter ended Feb. 28, 1997 were $222.2 million compared to $235.6 million for the same period of fiscal 1996. Jabil's second quarter net income increased 70 percent to a record $11.1 million or $.58 per share, compared to $6.3 million or $.34 per share for the second quarter of fiscal 1996.) So, in some cases, flat sales are insignificant, if earnings are growing. DD

To: jgideon who wrote (4467)	10/21/1997 8:02:00 PM
From: Rutgers	Read Replies (2) \| Respond to of 13925

Only time will tell, but CREAF has never been a stronger play <<Revenues will still be a worry to Wall Street. Note that revenues are at $287 M, compared to $284 M last year. The street will wonder how much more margins can be squeezed. They'll want to see revenue growth as well.>> It's a given that the Street wants to see revenue growth, but I think the better analysts will read the numbers from my perspective. When I look at last year's 1st Q, it was only the beginning of the turnaround - a time when they had flooded the channel with CD-Roms and they were taking in the revenue, but not making the profits. The street is going to evaluate the guidance for 2Q numbers, which my man Craig McHugh said we could expect to be 10-15% better than last year (which if you remember resulted in a huge $.64 earnings number). And he practically said that those numbers did not include an upside surprise from the Encore revenues, which he mentioned they had received some great initial feed back on. But the real number that I think the Institutions are going to looove between now and February is the diversification. I remember the 2Q conf call from last year when Sim said that the profits were 90+% from audio. During the call, they said their profits for this past Q broke down as only 55% audio, 35% multimedia and 10% other. This is HUGE! Wake the kids, call the neighbors, b/c this is what we wanted to hear. I am not going to repeat all the great news they shared during the call - anyone who is serious enough should listen to the replay - someone posted the replay # earlier today. But, mark my words, by February, we will remember tonight as the night that Creative arrived to the Big Show. Beat the estimate by roughly 20%, outstanding follow up conf call with a teaser for COMDEX, in short, I have reservations for the 40th street express arriving by February 1998.