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

To: virgil vancleave who wrote (7186)	12/14/1997 3:01:00 AM
From: SASQUATCH	Respond to of 13925

I would just like to say anyone still long on Creaf has balls, after the beating it has taken. How one deals with adversity shows ones true character. After reading much information, I think Creative will bounce back.If Creative's products are as good as they seem to be ,Asian crisis or not ,they are going to sell.

To: virgil vancleave who wrote (7186)	12/14/1997 3:38:00 AM
From: Douglas V. Fant	Respond to of 13925

virgil, Hey fellow/sister nightowls (in the Western Hemisphere that is!). CREAF is not going bankrupt. It has almost no financial obligations hanging over its head (less than 5% debt), lots of cash, and uses ECM's to do its manufacturing generally- so it does not have a lot of capital tied up in captial assets, or servicing thereof either. Indeed CREAF's profits fall to the bottom line and just build its "cash stash". That much more. Yes virgil you are right- I see some tremendous bargains out here in the tech sctor. The question is just when to jump. As to CREAF, even if you knock 20% off of ML's revised estimate of $2.50/year for 1998 (remember I noted that CREAF is essentially a lost volume seller by its makeup- and does not have a high fixed cost base), then CREAF would still post earnings of $2.00/year and have close to $5/share cash, and likely slightly over $5/share cash as of next quarter (I say slightly since CREAF will write off the R&D of its latest acquisitions likely next quarter in order to get them in as a tax deduction in 1997.). So right now you are effectively paying $12/share for CREAF's going business.... Sincerely, Doug F.