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

To: Jon Tara who wrote (5056)	10/26/1997 1:37:00 PM
From: Fred Fahmy	Read Replies (3) \| Respond to of 13925

Jon, I agree. I don't understand what CHIP is doing here unless he just enjoys be ridiculed. He admitts that he knows nothing about the company, its products, or its fundamentals. He just saw a large increase one day and bet that it would down....no understanding of why it had gone up. He comes on here making ridiculous predictions and then hides behind an unspecified use of TA. Who knows if he even knows any TA at all?? For CHIP's traget to be reached (18) it would have to trade at a forward looking P/E in the 6's. Let's review for CHIP - CREAF's fundamentals look great - Significant bottom line growth looking backward and more importantly forward. - Continuing to focus on increasing revenues while still producing excellent earnings. Possible Carmbridge acquisition is one example of growing revenue. Expanding DVD opportunity is another. - Increasing margins despite margin pressures being felt my many other tech companies. - Asian currencies continuing to work strongly in CREAF's favor - Product mix (previously a key analyst concern) shifting away from just sound cards to other high growth areas such as DVD. - Franchise brand recognition - Armed with this brand recognition, they recently introduced a new set of products which will benefit greatly from the usual seasonality. - Comdex coming up with high probability of new product announcements. - They just beat earnings significantly with no prior stock runup. In otherwords, the none of the blowout quarter was already factored into the price. - Management made very bullish forward looking comments. - Etc. etc. Now...I don't know about anyone else, but this doesn't look like a stock that is heading for a P/E of less than 7. Of course if the entire market crashes you never know. But even then it would be questionable and obviously there would be many better overvalued techs to be short on. Any 10 random tech companies at this point are likely to outperform CREAF on the short side regardless of how the market performs. IMO, CHIP is just looking for attention. Good luck, FF