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

To: HEXonX who wrote (6670)	12/6/1997 9:18:00 PM
From: Brian Lempel	Read Replies (1) \| Respond to of 13925

HEX, I doubt it. Why not sell a dog of their portfolio and pimp CREAF some more. If a brokerage house with the swing of ML starts reccomending it to their clients, it would soar. Here's an interesting thought: If CREAF formed an OEM deal with Compaq and distributed its "Coolest PC" kit with only 200,000 machines, a small fraction of CPQ's quarterly sales volume, it would bring in an incredible $130,000,000, assuming a $650 package value ($350 DVD, $100 speakers, soundcard and graphics card). Plus it would probably bring in even more revenue, since upgrades, such as AWE64 Gold, and better speakers would be optional. And that one deal would increase revenue by ~50%! I have no doubt that a similar deal will be reached within the year with one or more boxmakers. Assuming this to be the case, CREAF could easily earn $4.00 next year (estimates are for $2.50, but those will end up being more like $3.00 anyway). This times a p/e at a conservative 12 would put us awefully close to 50 bucks. Just some food for thought. Brian