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

To: Hitch who wrote (6692)	12/7/1997 12:47:00 AM
From: Douglas V. Fant	Respond to of 13925

Hitch, I think that all tech stocks got hit because we needed to discount in some fashion the upcoming slowdown in parts of Asia in consumer/busienss spending. Like CHIPHUNTER I do not see another 20% drop in this stock unless some weird macro event happened like Iran nuked somebody or Sim Wong Hoo gets up at the Annual Meeting next Thursday and says all has gone to heck in a handbasket. Both are possibilities, but we'd both probably agree that they are remote. Once the financial system is shored up in Asia, which evidence should show up in about 12-18 months, then spending should move upward in the affected Asian economies again. Since markets anticipate economic conditions out 6-12 months, expect Asian stocks to start rallying maybe mid year or fall 1998. That expectation may hold down CREAF as an Asian stock somewhat- but if CREAF puts up the numbers and comes up with another earnings surprise, then they'll sidestep this issue... Sincerely, Doug F.