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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (6531)	1/23/1998 9:21:00 AM
From: Tony D.	Read Replies (2) \| Respond to of 14162

RCV, Doug & Herm, I think we all agree that CREAF should go higher as the year goes on, but I am thinking that a quick rise in the stock today or Monday would be a good day to grab a nice premie. With the current volatility in the market as a whole, the oppertunity to buy back should present itself with in the next six weeks. I've been looking at some of the charts on the options and this seems to be the trend. If you can get a $5 premie and buy back for $1-$2, that gives a nice return. Herm, are you the author of www.coveredcall.com? I saw IOM there last night. Nice return! Doug, your three line bar chart really changes bigtime, when you change from low to high. Is it best to use the high setting during a highly volitile market? Tony D.

To: Herm who wrote (6531)	1/23/1998 7:52:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

CREAF came out with FANTASTIC EARNINGS at the close of the bell today. The Asian Flu does not realize the CREAF has an anti-body called US $$$$$$$$$ BIG CASH on hand and liquid that will prevent CREAF from being killed. WHAT A BARGAIN at these prices folks! ---------------------------------------------------------------------- NASDAQ: (CREAF : $20 1/8) $1,763 million Market Cap at January 23, 1998 trades at a 53% Discount PE Multiple of 7.8 X, vs. the 16.6 X average multiple at which the Retailers of Electronics & Computers SubIndustry is priced. THE P/E OF 7.8 IS A JOKE! Do you readers know a bargain when you see it right in front of you??????? It's a steal!!!! ---------------------------------------------------------------------- Now check out their earnings report: Creative Announces Record Second Quarter Earnings Friday, January 23, 1998 04:20 PM > SINGAPORE -- Creative Technology Ltd. (Nasdaq:CREAF), the leading provider of multimedia products for personal computers, today announced financial results for the second quarter of fiscal 1998 ended January 2, 1998. Sales for the second quarter of fiscal 1998 were US$395.0 million, up from US$386.0 million for the same quarter last year. Sales for the first six months of fiscal 1998 were US$682.8 million, up from US$670.1 million for the same period last year. Before one-time write-offs for in-process technology related to acquisitions in the quarter: * Net income for the quarter was US$75.0 million, up from US$56.9 million for the same quarter last year -- an increase of 32 percent. * Earnings per share for the quarter were US$0.79, up from US$0.64 for the same quarter last year. * Net income for the first six months of fiscal 1998 was US$126.6 million, up from US$71.6 million for the same period last year - an increase of 77 percent. * Earnings per share for the first six months of fiscal 1998 were US$1.34, up from US$0.81 for the same period last year. (The results for the first six months of fiscal 1998 exclude a gain of US$18.5 million or US$0.19 per share from the sale of quoted investments in the first quarter of fiscal 1998.) After one-time write-offs -- totaling US$60.3 million -- for in-process technology related to the acquisitions of ENSONIQ, Cambridge SoundWorks and the NetMedia group of OPTi, the results for the second quarter of fiscal 1998 were: Net income of US$14.7 million and earnings per share of US$0.15. After the same one-time write-offs for the acquisitions in the second quarter, and including a gain of US$18.5 million or US$0.19 per share from the sale of quoted investments in the first quarter of fiscal 1998, the results of the first six months of fiscal 1998 were: Net income of US$84.7 million and earnings per share of US$0.89. "Our second quarter was a period of significant accomplishments -- both in our strong financial results and in driving towards our long term strategic goals," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. "I believe our financial results were particularly impressive given the macro-economic issues in Asia. For example, our revenue this quarter, excluding Asia, grew by 11 percent compared to last year. We grew our cash position to over half a billion dollars, of which we have used US$130 million for key strategic acquisitions. With a formidable cash position of US$376 million at the end of the quarter, we are very well positioned to execute our growth plan. These financial results are a direct reflection of the spectacular efforts of our people and the quality of our products. "Looking toward the coming year and beyond, we are very optimistic about our prospects," said Sim. "Our three acquisitions give us significant additional strength in attacking key, high-volume, high-growth markets, particularly the sub $1,000 PC and the notebook computer segments. While the macro-economic issues that originated in Asia create uncertainties, the calendar year ahead promises enormous opportunities for our new products. Our newest audio products should dazzle the industry and allow us to sweep the market. We continue to enhance and cost-reduce our PC-DVD Encore(TM) products and to build upon our leadership in that potentially explosive market. Cambridge SoundWorks' speakers are a perfect fit with our PC-DVD and Environmental Audio(TM) initiatives and offer tremendous revenue opportunities. And we feel that, with our strategic partners 3Dlabs and 3Dfx, our opportunities in graphics are better than ever. In sum, we are armed to the teeth, and ready to expand our markets into the 21st century."