To: Randy Ellingson who wrote (4904 ) 12/1/1997 9:26:00 PM From: Brian Lempel Respond to
Randy, I still think CREAF has a ways to go. Profits in the past 2 years have been fueled by higher margins. This quarter should be huge with respect to all their products. Yields, which continue to improve with time should do just that (no new product in production yet). They will also continue to benefit from devalued Asian currency in the way of lower production costs, although that will be partially offset by lower revenue from Asian countries. This is also the first quarter that they will really benefit, IMO, from volume production of their PC-DVD, which is in hot demand (surprisingly).and the trend is either broken or the stock is so far below it that profits can be made without it being broken.
