Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rutgers who wrote (6874)	12/10/1997 8:20:00 AM
From: Rutgers	Read Replies (1) \| Respond to of 13925

If you want the Cliffnotes version ... "This acquisition is a win for both companies and it's a major win for our current and future customers!" said Sim Wong Hoo, chairman and chief executive officer of Creative. "ENSONIQ sells to a number of OEM customers including Hewlett-Packard and Gateway."

To: Rutgers who wrote (6874)	12/10/1997 9:27:00 AM
From: AJ Berger	Read Replies (1) \| Respond to of 13925

Ensonic purchase is good news for CREAF, here's why... In 1998 we will see the death of the ISA bus in PC's All PC's in 1998 will have several PCI slots and AGP. CREAF probably needs Ensonic to make the PCI product transition more easially. This is similar to when ADPT bought the PCI-SCSI chip division from WDC. Back then ADPT was having trouble developing an integrated silicon chips for SCSI3 PCI, so they bought the superior designed chip from WDC, and WDC got out of the business. Similar to CREAFs deal recently with OPTi, CREAF would rather get in bed with Ensonic, then continue to fight them in the marketplace. Similar to CREAFs deal with Cambridge recently, CREAF obviously want's to be synonomus with EVERTHING that is SOUND in Personal Computers -related. So this deal fits in well with that ultimate goal by expanding into the PC to Musical Instruments market which has both a high end high margin segment, and also vast untapped consumer potential. The technology exists today where and Electronic Band can Jam over the Internet, and maybe even get Peter Garbiel to join in. Some who fear that Win/Tel will eventually find a way to make CREAF's standards obsolete should take heart. The more CREAF consolidates it's position in this niche, the stronger it's hand will be in the future. We should get more details on how this fit works out on Thursday, so we may see some hesitation in the stock price till then. Obviously, they will put a positive spin on these developements, so we can hope for another analysts opinion upgrade Friday or Monday. Don't be suprised if the stock opens lower because as soon as the Street smells a $77 million charge, they will sell on instinct. Later on, when cooler heads interpret the small print, buying will resume.