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

To: CHIP HUNTER who wrote (8859)	1/24/1998 12:47:00 PM
From: Power ranger	Read Replies (2) \| Respond to of 13925

This Reuters reporter had a secret agenda against Creative (Rumor had it she was trying to woo Sim and was rejected - (she was ugly) :)) Jon sum up correctly, this article is unprofessional, prejudice, bias and sloppy at it best. Josephine Ng of Reuters must be given a LEMON award for her "professionalism" in reporting "accurately" She totally ignored the positive side of the news and chose to forecast on what she thinks are negative. A record earning of US$75M eps 79 cents under her pen becomes "profit fell to US$14.67M against $56.93M in the previous year" She conveniently left out the one time write off. Yes, she did mentioned later about the charges and even than she phrase it as" Net income was DRAGGED down by one time write-offs totally $60.3M...." She make it sound as if not only profit drop to US$14.67M but Creative had to take a charge and lose another US$60.3M. Does she hates Creative so much?? She goes on to report Creative share slipped in after market trading to 19 7/8 from the unofficial close of $20 1/8. What does she meant by un-official close ??? The official close is $20 1/8. Unless volume are unusually large, there are not much meaning in after market trading. Creative traded a very light volume of about 11,200 shares, with the last trade at 4.23 PM EST 2,000 shares @ 19 7/8. The after market close is the ones that is unofficial. Let's look from a positive prospective, Creative managed to make a record US$75M for this Q despite the Asian turmoil, In this quarter's they made three key acquisitions, gobbled-up two competitors, and still had US$386M cash left over in their piggy-bank. For the acquisitions, they took a charge of US$60M, thereby reducing their earning to about US$15M. This shown the management prudent and confidence in their forward business.They could have easily delay the write off or amortize them over a few quarters. Not withstanding the Asia malaise, 1998 should be a remarkable year for Creative, more new products on the pipe line. With Ensoniq, they get into the OEM business. Cambridge Soundwork enable them to offer the best audio listening pleasure. OPTI Netmedia allow them to tap into the lucrative Note Book audio business that was totally elusive to them . Watch out for Creative killer 3D Blaster Voodoo2 - this is the Sound Blaster equivalent in Graphic. Yes Asia is a problems and will be a problem for not only Creative but everybody. In the last quarter Asia sales drop about 6% but USA and Europe increase 11% . Asia make up about 16% of their sales last quarter. So the impact will not be very great. To take all this good news and twist it into the kind of article she wrote required quite a fair bit of genius. Singapore as part of Asia are feeling the crunch from the recent malaise and here we have a good solid (but many times misunderstood) Singapore company making a record profit , a rare good news indeed in this turbulence time, instead of positive reporting which the market needs badly, it is sad she chose to report so negatively. Don't worry - make money PR