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

To: Gameboy who wrote (8378)	1/17/1998 2:53:00 PM
From: taxikid	Respond to of 13925

wholesale to boxmakers is considerably less.. butif they are buying from asia in asian money.. well then your margin numbers are way way conservative.. too bad we cannot get these juicy details until the earnings come out.. taxi

To: Gameboy who wrote (8378)	1/17/1998 2:54:00 PM
From: Rutgers	Respond to of 13925

Come to think of it, you also forgot about the three awards Creative received from two different magazines in January From PCMagazine: Speakers and AWE64 Gold From PCWorld: Creative's 2nd Generation PCDVD-ROM Drive, which has taken top honors already "works with both PCs and TVs". Oh yeah, and don't forget that while I was at COMDEX, Creative Technology displayed their proposed DVD-RAM Drive, which they elected not to hype at the show. It will probably be deployed sometime this Spring or after the DVDRAM format wars have settled down - whichever comes first. Their DVD-RAM will have: Writing speed = 1XDVD(equiv. to 9.5X CD-ROM speed) Reading speed = 2X DVD ROM and 20X CD-ROM, with 5.2 GB or 2.6 GB media. Steve, A couple of points. First, congratulations on being the first one here to connect the dots and to articulate what some of us already knew. Second, I think your 30% margin on DVD is probably too high - Sim has previously indicated that DVD margins will be less than other products. Third, the price will continue to come down and thus, the $225 number you used will become $200, which will become $175, etc. Fourth, I don't think you can forecast too far down the road inasmuch as DVD-ROM is only a bridge product. In other words, once DVD-RAM begins to compete at an attractive price point .... Now, having said all that, I am still just as high on their PCDVD-ROM and RAM previously, but probably a little more conservative when it comes to the numbers.