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

To: Alan Chan who wrote (7608)	1/1/1998 11:06:00 AM
From: Douglas V. Fant	Read Replies (3) \| Respond to of 13925

Alan, Mexico bounced back quickly in 1992-93, I think partly because the rest of the world economy was in decent shape. My guess is that Asia will do similarly- and oncethe Govermnets allow the markets to allocate capital more efficiently, then the afflicted Asian economies should be able to sustain a multiyear upswing IMO, starting maybe mid-1999...... Which means for us that CREAF's sales will probably be only slightly up in 1998. However CREAF has continually improved its margins for the last six quarters, and can likely continue such improvement if its ECM's are located in Korea with a devalued currency. Also the financial impact of CREAF's three acquisitions is unknown- and expect more action by CREAF in 1998 to consolidate its "hegemony" over the multimedia sector... So CREAF should be bounced by the waves of the Asian issues, but like a good surfer eventually ride over the rough waves.... Stephan- BTW I agree YHOO is an amazing stock- but momentum may carry it higher before it returns to a more rational valuation. Also consider LCOS and XCIT, YHOO's "smaller cousins" if you want an overvaluation scenario- they have less pricing power and smaller market share than YHOO and are thus subject to being "squeezed" first if the expected revenue growth does not appear....... Sincerely, Doug F.