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

To: eddie who wrote (6478)	12/4/1997 6:04:00 PM
From: Brian Lempel	Read Replies (1) \| Respond to of 13925

Does anyone have a guess on what CREAF is selling its DVDs to retail partners for? I think they are selling retail for $399. Even if they are selling them for $200 (which is low, because I doubt they would be marked up 100%), that is $60 million in revenue per quarter, which will steadily increase as they ramp. We know they can't meet supply. This is the main reason why they can't go after OEM contracts right now. I think CREAF will continue to grow earnings into the future (with OEM contracts as they ramp new products), contrary to ML analyst. It is hard to see how they are downgrading '99 estimates because of Asia difficulties. Like they know what the economic climate will be there then! Brian