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: prakash who wrote (8208)	1/14/1998 9:21:00 AM
From: DRRISK	Read Replies (1) \| Respond to of 13925

Prakash, The problem with the acquisitions is that they have to be factored in. This kind of neat deal is hopefully not going to be a problem. The difficulty sometimes is that the due diligence misses some critical piece or something was manipulatively hidden. These were relatively small businesses and hopefully the slate is clear and the Street does not find any sleeping dogs in these two companies. If the Street sees them as consolidation and growth through acquisition then we are golden. Maybe we get a higher mutiple over the next three months. The analyst from Nomura a Kai Yin Leung said in his report on 10/10/97 that he projects that a mutiple of 14XPE gets 44 this year(his price target was $40) and this was before the acquisitions. If we see the ACQUISITIONS as strengthening the Company against possible competitors then we get the multiple IMHO no problem.This means that we are going to roll. The company needs to be crystal clear on the acquisitions and I believe they will be. DrRisk Good luck