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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Ron Bower who wrote (2641)	12/4/1997 9:18:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 78594

Re: CREAF I don't see anything to worry about. I still haven't bought it but I'm tempted. After buying Cambridge, it still has $4.25/sh ($400M), which means the enterprise is trading at only 6.8 times the run rate on last quarter's earnings, and the company is now in its strongest quarter of the year. The company has been very positive with me in my discussions. There is no debt, and cash flows are very strong. There is a franchise in the Soundblaster brand, and it has a new line of merchandise based on the latest chip. Heck, if the company can simply maintain it's current level of sales and earnings, the earnings yield is over 15%. Everyone is talking about the computer makers trying to speed up the development of a media chip that does sound in order to make ever cheaper systems. But most people I know like the upgradability of separate cards in their system. I feel the media chips will be useful mostly in laptops. Good Investing, Mike