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

To: Jon Tara who wrote (7485)	12/21/1997 3:09:00 PM
From: DRRISK	Respond to of 13925

Jon: Why Creaf will go up Monday IMHO: also justifying my 28k position 1: Creaf has become extremely efficient manufacturer with increasing margins in a business under pressure. 2: Management is not afaraid of fixing mistakes and learning from them CDROM vs DVD-2. 3: COGS in Asia are going to offset Asian slow down. 4: Longbond under 6% is very bullish for markets. Asia is anti- inflationary 5: Techs are oversold and Creaf is a real bargain stand-out 6: Profit taking and guilt by association has caused irrational price for Creaf. 7: January effect will be dramatic IPO hiatus that has corresponding big mutual fund inflows in December. 8: Management comfortable with earnings estimates of .77cents which to me is code for 6th in a row earnings surprise last 12/96 quarter was 146% over estimates. Some Creaf Data Earnings Estimates Qtr(12/97) Qtr(3/98) FY(6/98) FY(6/99) Average Estimate $0.77 $0.51 $2.53 $2.86 Number of Analysts 5 3 7 3 High Estimate $0.81 $0.56 $2.78 $3.27 Low Estimate $0.67 $0.41 $2.33 $2.63 Year Ago EPS $0.64 $0.48 $1.76 $2.53 Growth Rate 19.69% 5.56% 43.42% 13.11% Earnings Surprise 9/97 6/97 3/97 12/96 9/96 Estimate $0.44 $0.41 $0.30 $0.26 $0.07 Actual $0.55 $0.47 $0.48 $0.64 $0.17 Difference $0.11 $0.06 $0.18 $0.38 $0.10 % Change 25.00% 15.85% 60.00% 146.15% 142.86% 9: They are consolidating the industry and can now punish anyone who wants to enter the market lowering margins to punish them and expanding their scope and product line by strategic acquisitions. Who can challange them now? 10: Multimedia Internet apps. are coming of age and the medium will grow exponentially with rewritable recordable DVD the future. DVD will be the interface between tv and home entertainment PC 11. Asian Contagion will ultimately be seen as the true final painful step to true Economic Globalization and open Markets. DrRisk IMHO sorry for long post