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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: W. Clinton Terry who wrote (11994)	10/22/1997 2:03:00 PM
From: Sonki	Read Replies (1) \| Respond to of 27012

CREATIVE TECHNOLOGY (CREAF) 25 5/8 +4 7/8: Shares of leading multimedia products supplier are being escorted higher by investors who are glowing about what they read in the company's latest earnings report: strong margins, spectacular bottom-line growth, and better-than-expected EPS . As a result, Wall Street is pushing numbers higher and reiterating bullish recommendations of the shares. On the list of enthusiastic firms is CS First Boston, which raised its FY98 forecast to $2.78 from $2.53, its FY99 projection to $3.27 from $3.00, and reiterated its "strong buy" rating. The firms price target is $30 a share. The stir is being created by CREAF's report of a 252% year-over-year increase in net income, rising to $51.6 million from the $14.7 million reported in the prior year quarter. Most impressive about the bottom-line growth was that it came on sales growth of only 1.3% ($287.8 mln). To get an idea of why the stock is up 24% and analysts are pounding the table on the shares, simply read the comments of chairman and CEO Sim Wong Hoo: "Our gross margins have increased for the fifth quarter in a row. They are now at 32.9 percent and our cash position has doubled in the last year to US$463 million. Not only are our finances strong, our products are too. Never before in our history have we had so many stunning new products to unleash to the market. Our Sound Blaster AWE64 family of audio cards continues to be widely accepted in the market and now far surpasses the Sound Blaster 16 in revenue." Makes me want to buy some shares before even looking at the fundamentals; which, I am sure, many Mo' players are doing today. By the way, CREAF's Q4 EPS of $0.55 a share, was a dime, or 22%, better than Wall Street projections.